Additionally, the energy was the worst performing S&P 500 sector Monday, with the Energy Select Sector SPDR (NYSEArca: XLE) falling 3.1%.
“I’m very bearish,” Thomas Finlon, director of Energy Analytics Group LLC, told Bloomberg. “We’re awash in crude and gasoline.”
SEE MORE: Dollar, Oil ETFs set to Clash
OPEC output is rising as Iraq pumps out more and Nigeria produced additional crude exports despite attacks on oil installations, Reuters reported.
Saudi Arabia also maintained output close to record highs as the top OPEC exporter tries to maintain market share and meets seasonally higher domestic demand.
Further fueling the oversupplied outlook, U.S. oil drillers added 44 rigs in July, the most in a month since April 2014, with the rig count going up eight times in nine weeks.
For more information on the crude oil market, visit our oil category.
United States Oil Fund