Crude oil prices continue to plummet, reaching below $45 per barrel on the West Texas Intermediate (WTI) in New York on Monday morning. Oil prices haven’t reached those lows since March 2015.
Brent crude oil, the international benchmark that joined WTI in a bear market last week, fell by 4%, below $50 per barrel for the first time since January according to Business Insider.
Oil prices were reduced by 21% in July, leading to the biggest monthly decline since October 2008.
Oil continues to plummet as OPEC promises to push production levels higher. Chinese manufacturing has also fallen to a two-year low, leading to a decline in energy consumption.
With increasing oil reserves and decreasing demand in China, prices could fall even further in the coming weeks.
“The prospects of a second half-year price rebound have evaporated and there is a clear and present danger of prices revisiting the previous lows of the year,” David Hufton of oil brokerage PVM told the Wall Street Journal.”
Light, sweet crude for September delivery was reduced by 3.8% for the day to $45.31 a barrel on the New York Mercantile Exchange. Light, sweet crude is now just a $2 reduction away from hitting the six-year low settlement price it hit in March.