After New Year, it was revealed that both Russia and Iraq had increased their December production. For Russia, it's the biggest rise since the Soviet era and in Iraq since the 1980s, adding to the supply glut. The dollar's continual rally is also adding downside pressure to the oil price, Hansen says.

Even disruption to Libyan production has failed to add support to the price of crude. Hansen notes that if this news had hit a year ago, oil could have rallied between five and 10%.

The near-term outlook for energy companies isn't great and Hansen says some will be forced to close. But he says that the energy sector as a whole performed well in the first few trading days of 2015. He says this indicates that 'bottom' fishing' is going on as investors look for value in the market. But he warns there may be more falls to come before a later bounce.