Oil got crushed again overnight...

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:

NOW WATCH: New aerial footage shows aftermath of explosion in China

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.