U.S. crude prices sank on Thursday after a brief rally in the previous session, but analysts say the recent slump in oil prices won't last much longer.
In the five sessions through Tuesday, U.S. crude futures fell from more than $72 a barrel to just under $67 a barrel, shedding 7.6 percent. International benchmark Brent crude has tumbled as much as $6 a barrel from its recent 3½-year high of $80.50, but has rebounded to about $78 a barrel.
"I think it's temporary. I think the fundamental picture is still really strong. The market's getting a bit dislocated right now based on a risk-off sentiment," Tamar Essner, director of energy and utilities at Nasdaq Corporate Solutions told CNBC's "Squawk Box" on Thursday.
Essner said the market's aversion to risk has been stoked by concerns about the Trump administration's looming trade wars and questions about the integrity of the European Union, which have caused the U.S. dollar to strengthen. A stronger greenback makes commodities sold in U.S. dollars more expensive to holders of other currencies.
Oil prices were already heading lower on recent reports that OPEC, Russia and several other producer nations could soon begin winding down their 17-month-old deal to cap output. That agreement has drained a global glut of oil and helped balance the market, but it's now under review due to falling Venezuelan output and renewed U.S. sanctions against Iran, OPEC's third-biggest producer.