The price of oil dropped again last week by 3.8% to the $93 mark. United States Oil (USO), the oil ETF also slipped by 1.4% in the past week. Oil prices could continue to come down due to recent developments in the U.S oil market. Let’s review the main changes in the oil market including the latest changes in the spread between Brent and WTI.
During August, WTI price fell by 4.6%, while United States Oil fell by 3.7%. This gap is demonstrated in the chart below. This is mainly due to ongoing Backwardation in the futures market.
The rest of this analysis is at Seeking Alpha
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