Crude Oil fell below $35 a barrel in New York for the first time since 2009 as Iran reiterated its pledge to boost crude exports, bolstering speculation OPEC members will exacerbate the global oversupply. Futures fell 1.8 percent to $34.99 a barrel in New York, the lowest since Feb. 19, 2009. 

According to Bloomberg, Crude lost almost 11 percent last week, the biggest drop in a year. There's "absolutely no chance" Iran will delay its plan to increase shipments even as prices decline, said Amir Hossein Zamaninia, the nation's deputy oil minister for international and commerce affairs.

Oil slumped last week to levels last seen during the global financial crisis, while speculators increased bets on falling U.S. crude prices to an all-time high after the Organization of Petroleum Exporting Countries effectively abandoned production limits. The supply glut will persist at least until late 2016 as demand growth slows and OPEC shows "renewed determination" to maximize output, according to the International Energy Agency.

The Globe And Mail says that, Iran, which expects international sanctions over its nuclear program to be lifted by the first week of January, has already secured customers for its planned supply expansion, Zamaninia said in an interview in Tehran. The government is also preparing to offer oil and natural gas contracts to investors. The country pumped 2.8 million barrels a day last month, data compiled by Bloomberg show.

According to The Week, prices are sliding for three broad reasons. Opec is in such discord, because member states in economic turmoil want higher prices without having to cut their own production, relying instead on Saudi Arabia to be a 'swing' producer.

Then there are wider economic factors that have entrenched oversupply. Demand has not risen as much as expected because fuel economy and renewable energy use are both increasing at a time of concern over climate change; supply has not fallen as much as would have been expected because of unprecedented efficiency in production.

Finally, there is Iran. With a nuclear deal signed it is ready to start increasing exports to boost its economy - and Amir Hossein Zamaninia, the deputy oil minister, told Bloomberg there is "absolutely no chance" it will delay its plans. He even said it was prepared for a "worst case scenario" on prices as a result.

Oil prices are not going to recover anytime soon. Oil production is not declining fast enough in the United States and other countries, though that could begin to change in 2016. Demand for fuels is recovering in some countries, and that could help crude prices recover in the next year or two.