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A deal to lift sanctions on Iran has not yet been made, but global oil prices are already dropping in anticipation of an upcoming supply inundation.

Iran is the fourth-largest holder of crude oil reserves in the world, estimated to hold a tenth of the world鈥檚 supply, but sanctions have long crimped the country's energy industry. If an Iran nuclear deal is finalized, those sanctions are likely to be lifted, freeing up as much as聽20 million barrels of stored oil to make its way into the global market.

Oil prices dropped Monday about 1.6%, to about $52 a barrel, as investors prepare to adapt to the influx, CNNMoney reported.

Prices are about half of what they were a year ago, Reuters reported, in part because production from the oil cartel OPEC is up. Saudi Arabia, OPEC鈥檚 most powerful member, reported pumping 10.56 million barrels per day in June, a record high. The International Energy Agency said in its monthly report the oil market is 鈥渕assively oversupplied.鈥�

The rising oil supply coupled with the recent effects of Greece鈥檚 vote to reject bailout terms and China鈥檚 stock market troubles explain last week鈥檚 more dramatic price drop of as much as 8 percent, according to Reuters.

OPEC, however, said in its monthly report Monday it expects to see oil prices even out by 2016, as demand increases in China and the developing world and production grows more modestly in non-OPEC countries like the United States, where output has increased significantly in recent years due to fracking, but is expected to grow at a slower rate next year.

But with Iran back in the game, the IEA predicted, 鈥渢he bottom of the market may still be ahead.鈥� It said in its report, 鈥淭ehran has made clear its intention to lift exports as soon as the ink dries on an accord with the P5+1.鈥�

When it does, the major oil companies will be ready. Shell chief executive Ben van Beurden told Bloomberg at a Vienna OPEC conference that everyone in the industry was just waiting for the opportunity to go back into Iran for oil.

鈥淚ran is a wonderful country with a fantastic resource base,鈥� Mr. van Beurden said. 鈥淎s soon as there is legitimate opportunity, we will be looking at Iran.鈥�

Iran鈥檚 re-establishment in the oil market will come once a deal is reached with the 鈥淧5+1鈥� countries, or the five permanent members of the United Nations Security Council 鈥� the United States, the United Kingdom, Russia, China, and France 鈥� plus Germany. In exchange for lifting sanctions on oil trade, the Western countries have demanded Iran take steps to curb its nuclear program.

Deadlines on the deal have been pushed back several times since a framework was set in April. The most recent deadline was Monday, but CNN reported that Iran鈥檚 chief nuclear negotiator Mohammad Javad Zarif confirmed that talks are set to extend into Tuesday.