In recent weeks, prices of West Texas Intermediate (WTI) crude oil were hovering around $USD 40 mark per barrel.

There is resilience in the output of higher cost producers, pending new supply from Iran and OPEC likely will not change its point in next meeting in December. All these signal that cartel will continue production above the quota.

"With demand growth unable to keep up, the glut in the global oil market continues to build. Going forward, oil prices will remain under pressure, notbreaching the US$50 per barrel mark before the second half of 2016", says TD Economics in a research note. 

Once the production starts to taper off, growing more consistently with the demand in coming months of the year, the prices would be weighed on to increase above $USD 60 per barrel, as the inventories would be needing to work down.