There has been increasing uncertainty over oil prices since 2014. In fact, oil prices have been crushed because of an excess in production. With supplies falling off, prices have begun to firm up. But another surplus - that has built up and stubbornly failed to fall - threatens another oil price downturn.
In its July 2016 Oil Market Report, the International Energy Agency (IEA) warned about shockingly high levels of refined products sitting in storage in so many parts of the world, that a sharp rise in crude oil prices is unlikely in the short run. The IEA said that “the fact that crude oil has in the past two months moved within a high range of $40s/bbl should be a relief for some producers", however it went on to caution that “the existence of huge oil stocks is a threat to the recent stability of oil prices”.
Assuming that OPEC oil production grows modestly in 2017, the IEA expects to see global oil stocks that will continue to build slightly in the first half of the year before starting to fall a little in the second half.
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Sources:
http://oilprice.com/Energy/Energy-General/IEA-Gasoline-Glut-Could-Cause-Oil-Price-Rout.html
http://oilprice.com/Energy/Energy-General/The-Oil-Price-Rebound-Will-Be-Brief-Goldman-Sachs.html
http://www.theweek.co.uk/oil-price/60838/oil-price-rout-threat-from-petrol-and-diesel-stockpiles