Oil markets on Wednesday are focused on the U.S. Energy Information Administration's usual weekly look at oil inventories with the data due at 10:30 a.m. ET. Figures from industry group API late Tuesday showed an in-line stockpile reduction of 1.3 million barrels.
Markets have become somewhat obsessed with analyzing the figures for signs of a rebalancing in supply and demand.
Last week, U.S. crude futures fell more than 2 percent after the EIA reported an unexpected rise in crude and gasoline inventories. It said last Wednesday that U.S. commercial crude in storage rose by 1.7 million barrels to a total of 521.1 million barrels in the week through July 22. Analysts had expected a draw of 2.3 million barrels.
Like Energy Aspect's Sen, Stephane Foucaud, managing director of institutional research at FirstEnergy Capital, told CNBC on Wednesday that the U.S. inventory levels were misleading.
"At the moment, all eyes are focused on the inventory level in the U.S. and I think that although market participants expected the inventory level to go down a lot, they have gone down but perhaps not as much as people expected, and as a result it's all about a glut, an oversupply and so forth but I think the data is perhaps a bit partial – one of the reasons that the inventory has not gone down as far as expected is because the U.S. has imported a lot," she said.
Foucaud said that other data seemed to suggest that the market was actually "already balanced."
"Also we do not have a picture of the overall inventory level around the world so it'll be interesting when we get that data. I should think that we are currently selling more than we produce and that as a result, the demand is perhaps higher than production so the market I think is already balanced."
Sen and Foucaud are not alone in believing that oil market sentiment is over-bearish with both Citi and Standard Chartered issuing reports stating that there was no justification for the recent oil price declines.
Not everyone was in agreement with the experts, however, and Peter Toogood, investment director at City Financial Investment Company, offered an investor's perspective on the oil price, telling CNBC Wednesday that the glut of oil "is massive and the usage is not in the zone where you want it to be."