- U.S. crude oil plunges 3% to $42.85/bbl, hitting its lowest level since mid-November and retreating to bear market territory defined as a drop of at least 20% from a recent peak.
- The fresh leg lower comes on signs of rising output from Nigeria and Libya, two OPEC members currently exempt from cutting supply.
- John Kilduff, founding partner at energy hedge fund Again Capital, tells CNBC that oil prices "most definitely" are heading to $40 and likely into the upper $30s.
- The gloom means the Energy Select Sector SPDR ETF (XLE -1.9%) is on pace for its worst daily decline since March 8.
- Oil equities are broadly and sharply lower, including: XOM -1.4%, CVX -1.6%, COP -2.1%, RIG -4.3%, HES -6.2%, MRO -4.4%, SLB -2%, HAL -2.8%, NOV -3.2%, PSX -2.4%, VLO -1.6%, OXY -2.9%, APC -2.1%, EOG -2%, WLL -8.7%, KMI -2.4%, ETP -4.7%, EPD -2.4%, WMB -2.5%, SU -3%, ENB -1.6%, CVE -11.1%.
- ETFs: USO, XLE, OIL, UWT, UCO, VDE, DWT, ERX, XOP, SCO, OIH, BNO, DBO, ERY, DIG, DTO, BGR, XES, USL, FENY, DUG, IYE, GUSH, IEO, DRIP, FIF, DNO, IEZ, PXE, NDP, OLO, RYE, SZO, PXJ, FXN, OLEM, CRAK, DDG
- Now read: Occidental Petroleum: A 5% Yield Looks Great But Creates An Overhang
Original article