Bloomberg reported, according to the International Energy Agency (IEA), global oil markets could “drown in oversupply,” sending prices even lower as demand growth slows and Iran revives exports with the end of sanctions.

Bloomberg noted that the IEA trimmed 2016 estimates for global oil demand as China’s economic expansion weakens and raised forecasts for supplies outside the Organization of Petroleum Exporting Countries.

Bloomberg said oil sank to a 12-year low of less than $28 a barrel in London on Monday, January 18, 2016 as the removal of international sanctions over the weekend freed Iran to revive crude exports, threatening to swell a glut created by fellow OPEC members and U.S. shale drillers.