Crude oil is tumbling
There goes crude oil again.
On Tuesday morning, West Texas Intermediate crude futures fell below $44 per barrel in New York, and slid more than 2% to around $43.89 per barrel. Brent crude, the international benchmark, was also lower, near $50 per barrel, after having its biggest day in a month on Monday.
We got OPEC's latest monthly production numbers this morning, and they showed that production surged to a three-year high in July. The 12-member oil cartel has overshot its production target for at least a year in a bid to maintain its market share.
After what seemed like a recovery in prices around May, crude continued its plunge late in June and collapsed 20% from recent highs into a bear market last month.
Analysts do not see the slide in commodity prices slowing down soon. As Business Insider's Myles Udland highlighted over the weekend, Goldman Sachs' commodities experts think we've entered a New Oil Order, where the barriers to entry are much lower, and small shale producers can produce plenty of oil cheaply and quickly.
On Monday, Macquarie analysts said that commodities are re-entering a 'deflationary vortex.' The undersupply of the dollar is making it more expensive, and fewer dollars are buying commodities, creating an excess.
And today, WTI moved closer to a year-to-date low.
Here's a chart showing the slump in WTI on Tuesday morning.
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