“The improvement in oil fundamentals remains fragile and continues to feature large offsetting forces: wildfires have helped offset surprisingly strong Iran production, slowing demand growth in India and China in 2H16 will help offset production issues in Nigeria and Venezuela and finally product builds have offset crude draws. Uncertainties in the near-term oil outlook thus leaves the key price driver to be largely related to movements in the U.S. dollar – the global crude oil trade is dollar-denominated – rather than market fundamentals.”

Source: cnbc.com