Oil prices declined by more than 3% on Monday, falling below $37 a barrel.
The decline occurred after crude managed to top $38 per barrel on Thursday. Crude started the month above $41.
Oil is down over 11% on the month as production levels remain high at OPEC and demand in China has declined amidst a weakened economy.
Production will increase when sanctions against Iran are removed in January. The country’s officials have promised 500,000 barrels a day in 2016.
“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,” Naeem Aslam of AvaTrade wrote early Monday in response to Iran’s re-entry into the market.
OPEC recently decided to maintain production levels despite calls for a production cut to stabilize prices.
Lowering gas prices is great news for US drivers but not good news for countries that are depending on higher oil prices.