The price of Brent crude oil dropped to about $54 a barrel on Monday as a result of increasing worldwide inventories and indications of a possible agreement with Tehran on its nuclear programme.
Reuters reported that Brent traded at $54.20 for April, and US crude stood at approximately $44.50 a barrel.
French bank Societe Generale estimates suggest that world stockpiles are increasing at a rate of 1.6 million barrels per day (bpd).
The bank estimates the build will speed up to 1.7 million bpd in the second quarter of this year.
Societe Generale oil analyst Michael Wittner was quoted by the news agency as saying: "Another wave of weakness hit the oil markets last week, and we expect it to continue.
"The arithmetic works out to a combined build in crude oil and refined products of approximately 200 million barrels in March-June. Any way you slice it, this is bearish for prices."
Lower oil prices have allowed exploration and production firms to cut back on the number of oil and gas drilling rigs used in the US and other regions.
Goldman Sachs analysts said in a research report that a falling US rig count would only bring slightly lower output in the second quarter of 2015.
Reuters said any sharp increase in output or exports from Iran would be very negative for oil markets.