Oil prices took a beating Tuesday, with the West Texas Intermediate falling more than 7% to $46.24 a barrel.
That’s down from a high reached by WTI two months ago of more than $75 a barrel, a roughly 40% decline.
Concerns about a global oversupply have combined with anxiety about a potential slowdown in global growth to drive oil prices downward.
A forecast by the EIA, or the U.S. Energy Information Administration, that U.S. shale-oil crude production will climb again in January by another 136,000 barrels per day, hitting 8.4 million bpd, also helped fuel Tuesday’s price plunge.
The slide in oil prices comes also despite a recently announced deal by Organization of the Petroleum Exporting Countries to cut production by 1.2 million barrels per day.
“We are not adding to our energy positions at this time,” said Jeff Marks, AAP Portfolio senior analyst. “Instead, our preference is to buy stocks in high quality companies not tied to commodities.”
Shares of Exxon Mobil (XOM) fell $2.04, or 2.75%, to $72.00.
Schlumberger (SLB) fell $1.21, or 3%, to $37.84
The S&P 500 Energy Index (GSPE) fell 10.50, or 2.35% to 436.96.