U.S. oil prices have climbed almost 30% since a low in March, as analysts had expected that the oversupplied market would balance in 2015.
But analysts are now warning that, although U.S. oil production could stop growing or possibly fall in the next few months, other major oil producers are still pumping at a rapid pace, which would worsen the global oversupply, according to the Wall Street Journal.
Oil prices have risen in nine of the last 11 trading sessions but are still off more than 40% from the peak they hit in the summer of 2014.
WTI crude was down 1.99% to $55.58 at 3:30 p.m., while Brent crude was down 2.02% to $62.17, according to CNBC.
Analysts at Raymond James also released a note Tuesday to reiterate their bearish position on offshore drillers.
Paragon Offshore plans to report first-quarter earnings on Wednesday, May 13 after the market close.
More than 4 million shares had changed hands as of 3:30 p.m., compared to the daily average volume of 2,273,640.