Oil Trader Sees Crude Prices Stuck in $40 - $60/bbl Range for 2016 (OIL) (USO)

One of the world's top oil traders sees oil prices remaining flat for 2016 with increasing crude supplies continuing to outpace demand.

According to Bloomberg, citing commentary from Vitol Group BV CEO Ian Taylor, excess inventories aren't expected to clear until 2017 at the earliest. The exec expects oil to trade between $40 and $60 per barrel next year.

The recent slump is similar to that of 2008 - 09, following the financial crisis. At the time, oil fell to around $36 per barrel, but rebounded to around $80 within a year. That would make the current crisis worse in terms of longevity.

Brent crude prices slipped to a six-year low at $42.23 per barrel on August 24th, compared to prices over $100 during the same period in the prior year.

On watch today include: iPath Dow Jones-Goldman Sachs Crude Oil Fund (NYSE: OIL) and United States Oil Fund (NYSE: USO).

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