Oil prices slump to their lowest level, WTI slips 8% to trade at $36.58/barrel

Futures tied to West Texas Intermediate, the benchmark grade of U.S. crude oil, tumbled 8% to $36.58 a barrel in New York, their lowest price since mid-June.

Oil prices slumped to their lowest level in more than two months Tuesday, thanks to pressure from a stalling recovery in demand and planned production expansions by the Organization of the Petroleum Exporting Countries (OPEC) that threaten to add to an existing glut of crude.

Futures tied to West Texas Intermediate, the benchmark grade of U.S. crude oil, tumbled 8% to $36.58 a barrel in New York, their lowest price since mid-June.

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A strengthening dollar also added to the pressure on oil.

The WSJ Dollar Index, which tracks the U.S. currency against a basket of others, gained 0.4%. The crude drop in prices weighed on shares in oil producers as well.