A recent rally in oil prices to up and around $40 a barrel has prompted a degree of optimism in some sectors that prices had bottomed out – but not for long.
Oil prices have rallied over the last two months on hopes that a rebalancing of supply and demand in the wider global oil industry was filtering through into markets. Benchmark Brent crude futures are currently trading at $39.56 and West Texas Intermediate (WTI) at $38.78 - a far cry from the low point earlier this year of just below $27 a barrel but, for Brent at least, down 4.7 percent from a week ago.
"I'm already questioning what caused the rally, to be honest," Abishek Deshpande, oil and gas analyst at Natixis told CNBC on Tuesday.
"We are still quite cautiously bearish (despite) that rally that we saw in the last two months which was very much investor-driven and not fundamentals-driven so we're still quite cautious on that fact."