Crude oil is collapsing

Crude oil is falling to new lows.

On Monday morning in New York, West Texas Intermediate crude fell more than 2% and slipped below $US45 per barrel, a level it hasn’t touched since March.

Brent crude oil, the international benchmark, was down more than 3% at around $US50.47 per barrel.

The declines come after an ugly month across commodities. Specifically, in July, oil prices fell 21% in the worst monthly decline since October 2008.

It continues to be a story of oversupply. On Friday, a Reuters survey showed that the 12-member oil cartel OPEC pushed production to the highest monthly level in recent history.

Here’s a chart showing the slump in WTI on Monday:

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