SEE MORE: 4 Energy ETFs may be at Near-Term Tops

Still, some concerned oil market participants believe oil is rallying without strong fundamental cause. A case can be made that oil’s rally is defying still troubling supply dynamics and tepid demand.

“Gross short positions among speculators in U.S. crude fell by a massive 66,247 contracts to 96,985, the lowest in two months, in a sign that much of the rally over the last few days have been driven by short covering,” reports Reuters.

For more information on the crude oil market, visit our oil category.

United States Oil Fund