Today, West Texas Intermediate (WTI) crude reportedly closed at $37.65 a barrel on the New York Mercantile Exchange.
The drop is the largest one-day percentage loss since September; in fact, according to the New York Times, it is the lowest level since the height of the financial crisis in February of 2009.
The headlines and news reports today tell the whole story:
Oil Price Tumbles to Lowest Level in 7 Years: "A massive supply glut has wiped out two-thirds of oil's value after it peaked at nearly $108 a barrel in June 2014."
Energy Shares Lead a Decline in the Market: "Energy companies closed sharply lower, leading a broad decline on the stock market, after the price of oil dropped to its lowest point in nearly seven years."
Oil's drop below $38 may cause a world of hurt for U.S. shale: "As crude-oil futures are descending toward seven-year lows, U.S. shale-oil producers are getting walloped."
Saudi Arabia Drives Oil Down Near Seven-Year Lows: "Lower oil prices are generally seen as a boost to the U.S. economy, but they are taking away tens of thousands of oil sector jobs and weakening U.S. exports because of the strengthening U.S. dollar."
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