Crude oil prices are likely to remain steady around current levels, as growing macro uncertainties, rising U.S. output and large availability of core OPEC nations' spare capacity will offset supply constraints from Iran and Venezuela, Goldman Sachs said.

"Escalating trade wars and weaker activity indicators have finally caught up with oil market sentiment. The magnitude and velocity of the move lower were further exacerbated by growing concerns over strong U.S. production growth and rising inventories," the U.S. bank said in a note.

"We expect oil prices to likely remain volatile in coming months around their current levels and our Q3 forecast levels," the investment bank said in the note.

Increasing output from low-cost U.S. producers, debottlenecking in Permian region and the International Maritime Organization's shift in bunker sulfur regulation in 2020 will lead to persistent backwardation, lower oil prices and tighter U.S. crude differentials, the note added