Oil Prices Expected To Sink Further

Oil has had a tough year after geopolitical problems and economic slowdowns created a massive global supply glut that has shown no signs of depletion. On Wednesday this week, US crude dropped below $41 per barrel, a six year low. The continuing decline has caused investors to speculate as to whether or not the commodity has hit the bottom yet.

Many analysts believe that crude prices have further to fall in the coming weeks.

oil strategist Chris Main

there is a 90 percent chance oil will make its way into the $30's. Money manager David Kotok told

that prices have the potential to fall as far as $15 or $20 per barrel. While it's still unclear how fast and how far prices are set to decline, most believe lower prices are on the way.

Several factors have been contributing to oil's decline. Despite the fact that low prices have upped consumption in the US and helped boost economies around the world, some of the world's largest consumers, like China, are still struggling to kickstart their economies which has cut down on their appetite for crude. Supply is also on the rise despite a lack of demand. OPEC has been working to push US producers to cut back by ramping up output and the latest nuclear deal has the potential to flood the market with Iranian oil in the coming months.

As investors look for a bottom for oil prices, some are turning to the energy sector, where stock valuations are cheaper than ever. Indexed funds like

(VDE) may become an attractive option once prices have bottomed out, as the fund has lost nearly 32 percent over the past year. For individual stock pickers, industry giants like

are a smart pick as the company has diversified enough to survive tough times, but the stock has fallen just over 17 percent over the past year.