Oil prices tumbled below $50 a barrel Monday, reaching the lowest close in more than three years.
Light, sweet crude for January delivery fell 9.5 percent, or $5.15, to close at $49.28 a barrel. That is the lowest settlement since May 23, 2005, and was the biggest one-day drop since Oct. 10.
Crude has tumbled 67 percent since reaching a record $147.27 on July 11.
Analyst Phil Flynn with Alaron Trading Corp. said the $50 price remains significant psychologically for traders.
“It opens up the possibility of further declines,” he said.
The drop comes on the heels of a weekend meeting in Egypt, where OPEC said it would not cut production before it meets in three weeks.
“OPEC sent a valentine to the bears,” said Tim Evans, an analyst with Citi Futures Perspective.
Average U.S. pump price for regular gasoline fell 8.1 cents, to $1.811 a gallon, in the week ended Monday, the Energy Department said.
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Compiled from Tribune staff, wire reports
