The largest exchange traded fund (ETF) for oil was off more than 3% in afternoon trading Monday as news of peace talks in Libya and an analyst note from Goldman Sachs hurt the commodity.
Oil prices were lower early Monday following reports Muammar Gaddafi had accepted a peace plan to end the violence in Libya.
The commodity saw selling pressure step up later in the session after Goldman analysts said they were closing out a commodities trade initiated in late 2010 that included oil.
U.S. Oil Fund (NYSEArca: USO) was down almost 3% at last check Monday.
Crude futures dropped from a 30-month high after the International Monetary Fund cut its growth forecasts for the U.S. and Japan, Bloomberg reported. Crude was trading below $110 a barrel in recent dealings.
U.S. Oil Fund