Oil prices fell as much as 4 percent on Monday, with international benchmark Brent futures falling below $28 per barrel to touch their lowest level since 2003. Oil markets are preparing for Iranian exports after international sanctions on the country were lifted over the weekend.
Iran, which is an OPEC member, is ready to increase its crude oil exports by half a million barrels a day, Reuters reported on Sunday, citing statements from the country's deputy oil minister.
This has caused the market to panic, despite the fact that oil investors had anticipated the return of Iran to oil markets and that development of the oil industry in the country was likely to be a slow process, said American Enterprise Institute's resident fellow, Matthew McInnis.
Around Europe's close, U.S. crude was trading over 1 percent lower at $28.98 a barrel, after falling 3.6 percent to hit the session's low of $28.36 barrel, while internationally traded Brent crude was last seen below at $28.61, after falling 4.4 percent to $27.67 a barrel.
Despite the renewed slip in oil prices, oil and gas stocks had a mixed performance. Total and BP posted strong gains by the close, however, Tullow Oil was off some 3 percent. A handful of miners were also performing well, including ArcelorMittal, up some 3.1 percent.