Consequently, the markets may be in for an extended low oil environment. The International Energy Agency also recently warned that the world could “drown in oversupply” of oil in 2016, especially as Iran’s exports begin flowing into global markets.

Melek “added that while oil is unlikely to surge to $100 per barrel, his current forecast of $60 is very reasonable,” reports CNBC. “While some energy analysts have been suggesting that M&A will turn the tide in the beaten-down energy sector, Melek isn’t so sure.”

Oil’s ongoing weakness has prompted an array of big-name Wall Street banks to slash their price forecasts on crude. Morgan Stanley analysts, including Adam Longson, head of energy commodity research, argue that investors are putting too much emphasis on fundamental factors and are not paying attention to an appreciating U.S. dollar.

Goldman Sachs Group has also forecast oil to drop to $20 per barrel but attributes further weakness to potential storage tank limits as producers keep pumping until they completely fill up storage space and halt some production. However, Goldman also sees a new bull market being born from oil’s current bear market in the second half of 2016.

United States Oil Fund