Oil prices fluctuate amidst mixed market signals.

Despite bullish signs such as production shut-ins in Canada and expectations of tight supply during peak demand season, traders have been selling oil and fuels for the past few weeks. Hedge funds and similar entities have sold the equivalent of 249 million barrels of crude since April 18. Analysts expect a tighter oil supply situation in the second half of the year driven by growing demand from non-OECD countries and a smaller-than-expected increase in U.S. production. However, traders remain cautious and uncertain, and the market may need something bigger than the Canadian output shut-ins to rekindle interest in oil buying.