The price per barrel of oil is at its lowest level since the start of the 2008 recession.
Oil tumbled by 6% on Monday to just $37.50 a barrel.
Oil peaked at $108 per barrel in June 2014 before starting its massive slide in value.
The Dow dropped by 117 points on Monday as companies such as Exxon Mobil continued to feel the brunt of oil’s massive devaluation.
Oil settled at $37.65 a barrel on Monday, the lowest price since February 2009.
OPEC on Friday said it would not cut oil output, a decision that was announced after a six-hour meeting. The oil cartel essentially left production near record highs despite the oversupply problem.
Top oil producing nation Saudi Arabia and its rich allies in the Gulf that can continue to produce cheap oil with a profit while another faction led by Nigeria, Venezuela and other countries need higher prices to boost their economies.
American shale oil is also booming which has flooded the market with excess supply. The U.S. has vaulted near the top of the global oil leaderboard, stealing market share from OPEC. The cartel has been aggressively pumping oil in an effort to steal back market share.
China’s economic slowdown is expected to continue pushing down demand for oil in the region, which would increase the surplus while pushing down oil prices further heading into 2016.
Crude oil last hit $38 a barrel in late August amidst chaos in global financial markets sparked by fears about China.
Analysts are now predicting that prices at the pump could soon fall below $2 a gallon for the first time since 2009. The average gallon of gas is currently $2.03, down from $2.68 a year ago, according to AAA.
The quickly falling oil prices have led to a massive increase in the number of energy business defaults in 2015.