Other oil traders believe 2017 will be fertile ground for an oil rally. While production has declined in the U.S., recently rebounding oil prices are encouraging exploration and production companies to revisit spending plans with some increasing capital expenditures. That has some oil market observers concerned about a rising rig count and the subsequent impact on crude prices.
SEE MORE: 4 Energy ETFs may be at Near-Term Tops
“Last month, the International Energy Agency said that global crude supplies were outstripping demand. However, Croft maintains that the oil oversupply looks to be easing, and that the persistence of the global glut has potentially been overblown. In a recent note, she wrote that ‘acute downside risks to the oil market are visible and are likely already mostly priced in,’” reports CNBC.
For more information on the crude oil market, visit our oil category.
United States Oil Fund