Crude oil just crashed to a six-year low.
On Monday afternoon in New York, West Texas Intermediate crude futures fell 6% to as low as $37.59 per barrel. The previous low, reached in August, was $37.75.
Brent crude was also getting slammed, and fell 5% to a six-year low of about $40.69 per barrel.
WTI fell nearly 3% on Friday as the 12-member oil cartel OPEC met in Vienna.
At OPEC’s meeting on Friday, member countries decided to set its production level at 31.5 million barrels per day, and did not agree on what the new limit should be.
After OPEC’s meeting, commodity strategists at Goldman put out a note saying that oil prices could plunge another 50% in the coming months, as the oil market tries to rebalance the supply and demand situation.
OPEC members have ramped up production and have exceeded their quota for at least 18 months to try and push out smaller rivals like US shale producers.
Here’s the drop in WTI on Monday:
And here’s crude oil over the past nine years:
Energy stocks were also getting crushed.
The energy sector was the biggest decliner on the S&P 500 in early trading, and Chevron was down 3%, the most on the Dow.