Crude oil and related ETFs continued to fall deeper into bear market territory Tuesday as traders shunned anything with a hint of risk.
On Tuesday, the United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, declined 7.3% and the United States Brent Oil Fund (NYSEArca: BNO), which tracks Brent crude oil futures, decreased 6.8%, both breaking into new one-year lows.
Meanwhile, WTI crude oil futures were 7.5% lower to $52.9 per barrel and Brent crude fell 7.4% to $61.8 per barrel.
Crude oil prices extended their rout Tuesday, falling below the one-year low of $55 per barrel that was reached last week on concerns over increased global oil supplies, along with slowing demand due to a weaker global economy.
“The same old adage applies…Too much supply, not enough demand,” Matt Stanley, a fuel broker at StarFuels in Dubai, told CNBC.
Oil traders may also be following the risk-off sentiment in the broader market as equities continued to weaken.