"The window of opportunity for a significant move higher in oil prices in the near term continues to narrow, but is not completely closed as of yet", he said.
Domestic oil and gas producers have been ramping up production ever since OPEC and non-OPEC producers, including Russian Federation, promised to curb output for the first half of 2017 in order to rebalance the global market.
Brent crude LCOc1 settled up $1.22 a barrel at $56.80. Though OPEC has complied so far with its production agreement, he said the steady increase in US oil production could undermine the intent of the arrangement.
USA crude stocks grew last week by an unexpected 6.5 million barrels to 494.76 million barrels, the Energy Information Administration said on Wednesday, as refiners let stocks build further in a seasonally slow season for production.
"It was a very bearish report on several fronts, from the large across-the-board builds in the major categories, and the continued decline in refinery runs", said John Kilduff, partner at energy hedge fund Again Capital LLC in NY.
Novak also said that he expects the market to rebalance by the middle of this year and that global oil prices are now much closer to their fair levels.
The 40-year-old ban on exports of American crude oil was lifted in late 2015.
The OPEC deal to cut production was a reversal of cartel members' previous strategy of continuing to pump oil to protect market share.
North American production continues to create a big threat for crude oil prices, while the recent reports showed that US producers are set to pump higher volumes compared with the recent expectations.
American oil companies are poised to export up to 800,000 barrels of oil per day in 2017 if President Trump fulfills his promises to ease restrictions and promote oil production. "In Asia, strong demand is tightening the market, but it will take time", said Oystein Berentsen, managing director for crude at oil trading firm Strong Petroleum in Singapore.
OPEC has implemented most of its reduction.
A Reuters survey this week found that most key oil producers were sticking to the deal, with compliance above 80 percent.