Crude oil just crashed to a fresh six-year low.
On Wednesday morning, West Texas Intermediate oil futures quickly collapsed, falling more than 5% to as low as $US40.87 during the day.
The sharp drop in oil comes after the Energy Information Administration’s weekly release showed that crude inventories rose by 2.6 million barrels last week, although production fell.
Inventories remain at the highest level for this time of year in at least 80 years.
Oil prices have fallen about 30% in the last several weeks as markets continue to battle oversupply, and Wednesday’s report doesn’t make it seem like this problem is going away anytime soon.
Here’s a chart showing the drop in WTI on Wednesday:
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