OIL CRASHES BELOW US$45 FOR THE FIRST TIME IN 6 YEARS

The price of West Texas Intermediate oil slumped below $45 for the first time since 2009 on Tuesday.

On Monday, WTI fell 5%, and as of 8:05 am ET on Tuesday it was already down more than 3%. Near 9:15 am ET, WTI had pulled back some of its losses and was trading near $45.30. 

The latest drop in oil follows comments by the oil minister of the United Arab Emirates reported in The Wall Street Journal. Suhail Mohamed Faraj al-Mazrouei told an energy event in Abu Dhabi that OPEC could not "continue protecting a certain price. That is not the only aim of OPEC."

And over the weekend, Goldman Sachs wrote in a note to clients that it thinks oil could fall to $39 over the next six months.

Since June, WTI is down 59%.

Here's the intraday chart of WTI on Tuesday, which shows the bounce off its morning lows, though you can still see the steady collapse to new lows overnight.

FinViz

And the last year of WTI prices is just a stunning chart.


FinViz

Brent, the international benchmark for oil prices, is just a little higher at $46.95, after nearly a week ago falling below $50 per barrel for the first time in six years.

It's been very choppy so far Tuesday:

Investing.com

The Journal also carried a comment from Thina M. Saltvedt, at Nordea Bank: "We are still very much sentiment-driven and the sentiment will continue to be negative as long as there is no change in production ... Oil is still piling up."

The fall in oil prices is having a dramatic effect around the world. Producer nations like Russia and Venezuela are suffering, and the previously booming US shale industry is also likely to be tested if prices stay low.

The plunge has helped to push the eurozone into deflation for the first time since 2009, but consumers everywhere are likely to drive up consumption a little as falling fuel prices increase their disposable income.

Business Insider