The crude oil price fell over three percent pulling it below $37 a barrel. The total fall in oil price this month was 11 percent and is trading at 11-year low level. The sluggish demand in China and glut in global oil production are pulling oil prices lower.

The crude oil fell from $38 per barrel last Thursday. This level was highest since it began December trading above $41 a barrel. Asian traders see further bleak situation for oil prices in the global market. 

According to a report by CNN Money, the oil price is poised to fall again as Iran is gearing up adding more shipments. Iran's official news agency IRNA was quoted in the report saying Iran could add 500,000 barrels per day in 2016 after the economic sanctions are lifted.

The Organization of Oil Exporting Countries (OPEC) has decided to keep up its production levels and denied the calls for reduction in output for stabilizing prices. However, despite OPEC's denial, the prices continue to fall. This is eroding revenues of oil-dependent economies. 

Iran is likely to reenter the global oil market when the western economic sanctions are lifted on it. Iran has already announced that it's ready to add 500,000 barrels per day after the sanctions are lifted, as reported by Fox 40. Naeem Aslam of Ava Trade, said: "This is very much already priced in the market and what will matter at this stage will be the actual levels above or below this mark."

The pre-Christmas rally in oil price seems to be over as it again started declining. The International bench mark Brent crude fell below $36 a barrel. The latest data from Energy Information Administration (EIA) states the US inventories fell by 5.8 million barrels last year. It's better than expected rise of 1.1 million barrels. The drop in inventories is erasing concerns about oversupply. The Brent contracts were traded $37.70. 

The Week reports that the latest report from 13-member OPEC group indicating higher overall demand in next five years pushed oil price up last week. It's predicted that oil price may regain to $70 a barrel during that period. This includes marginal rise in oil price in 2016 as well. However, this is contrary to the bearish forecasts on oil price made for 2016 year. 

West Texas Intermediate (WTI), which is the benchmark for light, sweet crude oil in America, has been trading discount to its global counterpart Brent since 2010. The shale boom started flooding the US market from 2010 onwards. 

The 40-year-old ban on exporting oil has stopped US producers entering into the global market. The ban was lifted in December 2015. Obama-led US government has agreed with Republican-controlled Congress on lifting the ban on crude oil exports. The US shale oil production is easing following the continuous drop in global oil price.