The oil rice has now tumbled over 12 percent in the last month and may be set for further fall after the International Energy Agency noted that rising fuel prices were hitting consumers which may cause a reduction in demand.

The Energy watchdog also noted that overall global growth was somewhat lagging at the moment and this is another factor which may hurt the oil price

"There are two downward pressures on global oil demand growth. One is high oil prices, and in many countries, they're directly related to consumer prices. The second one is global economic growth momentum slowing down," said IEA chief Fatih Birol in Singapore.

With the introduction of sanctions looming against Iran, many analysts believed that oil prices would move substantially higher as a reported one million barrels per day were removed from the market but there seems that many countries such as Russia have been willing to step in and fill the gap which has more than offset the Iranian problem

 "The narrative about the supply crunch with Iran got offset by this burst of supply that came on the market from OPEC and Russia and Saudi Arabia," said John Kilduff, founding partner at energy hedge fund Again Capital.

Some say now the key to a rebound in the oil price is the potential sanctions that may be introduced against Saudi Arabia over their alleged participation in the killing of a the journalist in Turkey which may have been sanctioned at the highest level.

Although the market was able to cope with the reduction in oil posed by the Iranian sanctions, Saudi Arabia would be a different ball game and any sanctions against the country would surely drive up the oil price.