Oil investors returned from the long Easter weekend to find crude prices back below US$40 per barrel.
In London trading Brent Crude was down 2.9% to US$39.11, while West Texas Intermediary had dipped 3.5% to just over US$38 per barrel.
It comes as the market awaits news of what is predicted to be another rise in weekly American oil inventory statistics to set another record high.
Previously, on Monday, data from the InterContinental Exchange indicated the highest level of ‘net long’ speculation in the oil market on record.
As oil prices tip back below US$40 per barrel, the market may wonder what could happen if sentiments change and sees some of those trading positions unwound.