Oil has dived to an 11-year low

The price of oil plunged to another historic low on Wednesday morning as global geopolitical tensions grow, the volatility of Chinese markets continues, and the global glut of oil gets even bigger.

Early in the day, Brent crude, the European benchmark, slipped as low as $35.54 per barrel — its lowest level in more than 11 years.

The price has recovered a little since then, but as of 9:55 a.m. GMT (4:45 a.m. ET) is still down more than 2%, sitting at $35.68 a barrel, just $0.15 above its earlier bottom. Here’s what it looks like:

The American benchmark, West Texas Intermediate, is down by around 1.5%, at $35.45.

Right now geopolitical tensions are as high as they have been in a long time, and the oil markets do not like it at all. ISIS continues to threaten the West, North Korea just tested a mega bomb, and, most importantly for oil traders, tensions between Saudi Arabia and Iran are at an all-time high.

This follows the execution of a prominent Shiite cleric, which led to a severing of diplomatic ties between the two countries. Given the importance of both Saudi Arabia and Iran to the global oil markets, it’s no great surprise that tension between them are spooking the markets.

Three days in, and the 2016 market horror show continues.

NOW WATCH: Martin Shkreli may have hung up on an FBI agent live on video hours before his arrest

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.