As concerns about the glut of oil in the world continues to weigh, questions have been raised over why the price of the crucial commodity hasn't fallen even further. For one analyst, the answer comes down to "phenomenal" demand.

Oil was trading slightly higher Wednesday, with Brent crude around $55.60 a barrel and U.S. West Texas Intermediate at $47.80. Both are some way off their year-to-date lows of around $46 and $42 respectively in March.

This comes despite the possibility of a last-minute deal over Iran's nuclear program, which has pushed prices lower over recent days amid expectations that an agreement would see an influx of Iranian crude on the market.

However, Amrita Sen, chief oil analyst at Energy Aspects, argued that oil demand was actually robust, and would likely prevent the oil price from falling further.

"Demand is phenomenal, as we are absorbing a lot of the oil that is being produced," she told CNBC Europe's "Squawk Box" Wednesday.

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"Product inventories are actually pretty low and U.S. refineries are actually coming out of (a period of) maintenance now, (as) the rest of the world goes in."