Meanwhile, on the demand side, China, which consumes about 12% of the world’s crude oil, could see lower demand as economy shifts to a less energy-intensive economic model, the Wall Street Journal reports.

Consequently, the markets may be in for an extended low oil environment. The International Energy Agency also recently warned that the world could “drown in oversupply” of oil in 2016, especially as Iran’s exports begin flowing into global markets.

The U.S. Energy Information Administration will reveal U.S. crude oil stocks Thursday, a day late due to the Monday holiday.

United States Oil Fund

Max Chen contributed to this article.