Crude oil prices in the US have dropped 6.6%, leaving them at $53.43 a barrel. This is the lowest price oil has fallen to since October of last year (a sentence we seem to be saying a lot this week).
This entry into the bear market comes after four straight days of gains, breaking a chain and prompting a frantic sell-off. A sharp drop in the Dow Jones affecting multiple businesses large and small has created a rippling effect throughout the entire economy, affecting even industries that have nothing to do with the tech giants. Case in point, crude futures have plummeted up to 31% since last month, the tip of a four-year high for the industry. Some commodity experts are concerned that supply will outpace demand in a year, which will prompt further output cuts.
Many traders and investors have begun dumping crude oil futures in favor of natural gas, further bloating the supply while the demand begins to dwindle. Crude oil growth is expected to fall short of original targets next year if this trend continues.