Good news drivers: oil prices have tumbled to the cheapest levels since the Great Recession.
Oil tumbled another 6% on Monday to as low as $37.50 a barrel, its weakest level in almost seven 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.
The latest oil plunge is weighing on the stock market, with shares of Big Oil companies like Exxon Mobil (XOM) retreating further. The Dow dropped 117 points, with the energy sector its biggest drag. Oil settled at $37.65 a barrel on Monday, the lowest since February 2009.
These moves come after Friday’s decision by OPEC not to cut oil output following a contentious six-hour meeting. The oil cartel essentially left production near record highs despite the oversupply problem.
“My head is spinning from the past few days of declines. Sentiment is horrible. It’s very bearish,” said Mike Wittner, global head of oil research at Societe Generale.