There is now a global glut of oil, resulting from continued production despite falling demand.
The surplus is at its highest level since 2009, according to the Organisation of Petroleum Exporting Countries (Opec).
Some countries, such as Saudi Arabia, have actually increased production which has resulted in the market being awash with cheap energy.
Producers in other countries, such as US shale drillers, have had to cut spending and slash jobs because of the lower prices caused by the surplus.
Oil prices have fallen by 40% over the past 12 months, while the supply has gone up by 2.5 million barrels a day. Global demand is 1.6 million barrels a day.
The last time the market experience such a glut was when global demand collapsed in the wake of the financial crisis in early 2009.
Opec countries appear to be on course to maintain production levels as a way to eliminate competition from other countries at the cost of enduring lower revenues.
“Non-Opec producers will now see their production levels decline for the first time since 2007,” the Opec report said.
The report admitted low prices were providing "a challenging market environment for some higher-cost crude oil production."
