Oil prices likely to remain volatile

In the recent weeks, the oil prices have been volatile. Yesterday, Brent soared by 5% while WTI rose by 6%, however, in today's session both the oil types declined by more than 2%. Until there are clear signs that the oil supply is going to reduce, the prices are likely to remain volatile.

Decline in the U.S. oil rig count coupled with the International Energy Agency's oil market outlook, which expects U.S shale oil production to reduce by 600,000 barrels per day this year, followed by another 200,000 barrel per day decline next year, increased the expectations of production cut yesterday.