“The world currently has more than enough crude oil, and in fact we are starting to see a surplus of oil forming in several places around the world,” Dominick Chirichella, analyst at the Energy Management Institute, said, the Wall Street Journal reports.
The United States Brent Oil Fund (NYSEArca: BNO) has declined 5.6% over the past three months while the United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate oil futures,dipped 4.3%.
WTI crude oil futures now trade around $96.4 per barrel and Brent crude futures are hovering about $101.6 per barrel.
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