The price of a barrel of the commodity over the weekend fell below 40 dollars, the lowest since 2009.
The price of Brent Crude fell 5.3% to 40.73 dollars a barrel.
There are fears however that the drop could worsen in the coming months and into next year as OPEC is not likely to consider its output ceiling – which had been set at 30 million barrels a day – until next June.
CEO of Tullow, Aidan Heavy tells Citi Business News the development is worrying.
He added, “So you are talking about an industry that there is a massive lack of investment so the oil price cannot stay at this level, because the supply is falling off quite dramatically. So if we were pessimistic before twelve months you should be able to see that supply will not meet the world’s demand.”