The price of oil rebounded on Monday after falling below $28 a barrel. Brent crude, which is the international benchmark, dropped to as low as $27.67 a barrel on Monday, the lowest it has hit since 2003, reported the BBC. It then recovered to trade at $28.86, while the price of US crude was $29.65 a barrel after hitting $28.36.

Monday's drop has been linked to the lifting of economic sanctions that were imposed on Iran. The country said on Monday it plans to produce half a million more barrels of oil per day. The oil price has dropped more than 70% since mid-2014 due to an oversupply of one million barrels a day. With Iran back in the market, the surplus is expected to increase further as the country has the world’s fourth-largest proven oil reserves, according to the United States Energy Information Agency.

The Organisation of the Petroleum Exporting Countries, however, predicted that crude would mount a recovery this year.