Crude oil is getting smoked to start the week.
On Monday, the price of West Texas Intermediate crude oil was down more than 4.4% to about $47.40 a barrel, giving back most of a huge rally the commodity experienced last week when prices moved from around $46 a barrel to north of $50.
The tumbling price of crude on Monday was also dragging down energy stocks, with Transocean (-8%), Chesapeake (-7%), Schlumberger (-2), and Whiting Petroleum (-10%) coming in as the biggest losers.
Here’s Monday’s drop in crude prices:
In a note to clients on Monday, analysts at Goldman Sachs reiterated a call that oil prices were going to stay “lower for longer,” calling for WTI to fall to $40 a barrel in six months and $45 a barrel in a year.
The firm said that part of the decline in oil prices seen during the summer had to do with macroeconomic factors, but was also related to a fundamentally oversupplied market.
Overall, markets were quiet Monday with US stocks little changed as the bond market is closed for Columbus Day.