A popular oil exchange traded fund has dipped back into a bear market after a surprise build in gasoline inventories and the Federal Reserve announced it will keep rates unchanged.
On Wednesday after the Federal Open Market Committee meeting announcement, the United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, fell 2.2% and was trading 20.9% off its June 8 high.
WTI crude oil futures were 2.4% lower Wednesday to $41.91 per barrel. WTI crude was 18.1% off its June 8 high.
[related_stories]Meanwhile, the United States Brent Oil Fund (NYSEArca: BNO), which tracks Brent crude oil futures, fell 2.6% Wednesday and was 18.5% off its high.
Brent crude oil futures were down 3.0% Wednesday to $43.52 per barrel and were 17.1% off their highs.
West Texas Intermediate crude oil has been sinking after U.S. government data revealed motor fuel inventories jumped by 452,000 barrels last week, compared to analyst expectations of a drawdown, the Financial Times reports.
“It doesn’t look the bulls will be back in charge of this market any time soon,” Tamas Varga at London-based oil brokers PVM told the Financial Times.