Over the short-term, shifting demand and supply dynamics could help add to modest swings. For instance, the number of Americans filing for new applications for unemployment benefits dipped last week to the lowest in eight weeks, which is supportive of the demand outlook, according to John Kilduff, partner at Again Capital LLC.
OPEC also expects global demand growth to rise slowly over the medium-term on cheaper oil, with daily consumption to rise by 1 million barrels per year to 97.4 million in 2020.
On the supply side, U.S. crude inventories declined last week. Additionally, U.S. oil output is beginning to fall, with U.S. crude and condensate production peaking at 9.612 million barrels per day in April but it has since fallen by 316,000 barrels per day in June.
United States Oil Fund
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Max Chen contributed to this article.