The steady decline is creating a widespread headache for financial markets. It’s causing energy companies’ profits to plunge, raising worries about the prospect of bankruptcies in the oil sector and spooking investors about global growth. In total, crude oil has plunged an incredible 75% from its June 2014 peak of almost $108.
The Hang Seng (HSI) dropped nearly 4% Thursday, while the Nikkei (N225) shed 2.3%. Major indexes in Europe were trading 2% to 3% lower after Sweden’s central bank pushed its key interest rate further into negative territory at -0.5%.
Dow futures are down roughly 300 points, or 1.9%.
The International Energy Agency said earlier this week that it expects the global oil glut to grow throughout the year.