Brent crude has been trading around USD 36 per barrel and WTI Nymex has been around USD 34 per barrel mark.
The oil prices are fairly balanced but the big question now is what will happen to prices when the Iranian oil hits the market. So, only by December-end there would be an oversupply and there would be a big price correction, said Stuart Elliott Associate Editorial Director, Platts.
Crude is trading lower as markets await the outcome of the Iran-Nuclear talks. Brent is down over a percent at 57 dollars a barrel. WTI Nymex is also more than a percent lower at the 52 dollars mark.
Amrita Sen, chief oil analyst with Energy Aspects says USD 40 a barrel is definitely a possibility. She says in these kinds of market it is difficult to call a bottom considering the last USD 20 move wasn‘t justified by fundamentals.