Despite the increase in US shale output, analysts are expecting inventory to shrink as OPEC continues production curbs.

In an April 17 Citibank report, analysts forecast oil prices to climb above US$60 a barrel by the second half of 2017, though it is dependent on OPEC extending their output agreement.

The forecasts are in line with previous comments from analysts at Goldman Sachs who see inventories shrinking and have called for more patience from the market.

Citi analysts expect US West Texas Intermediate oil to average US$62 a barrel and global benchmark Brent crude to average US$65 a barrel in the fourth quarter.