Increasing Oil Supplies Continue To Plague Industry

In a report issued by the American Petroleum Institute, U.S. crude oil supplies rose by 14.3 million barrels from last week. Analyst estimates was for an increase of 3.1 million barrels. The U.S. Energy Information Administration is expected to confirm the news during late Thursday morning.

Carsten Fritsch, an oil analyst in Frankfurt Germany said, "The inventories were the trigger for the sharp correction lower. The focus is again back on the oversupply - the big question is for how long?"

The glut in production of oil paired with weakening demand for the commodity has continued to drive prices lower. Light, sweet crude oil has recently fallen to below $50 a barrel, while brent oil has fallen below $58 a barrel.

The news has caused oil indexes to drop in value. The United States Oil Fund LP (ETF) (NYSE: USO) recently traded at $18.53, down 3.7 percent.