Oil Price Plunges Deeper on China Worries

With severe economic issues still facing China's economy and stock market, the price of oil took another hit today. Oil settled down about 5% to under $32 a barrel. It appears that the bear market for oil has just begun. There is talk that the price may fall further to just $20.

Reuters covered the fall:

Morgan Stanley warned that a further devaluation of the yuan could send oil prices spiraling into the $20-$25 per barrel range, extending the year's 15 percent slide.

"The focus is still on China and the demand concerns in China moving forward into 2016," said Tony Headrick, an energy market analyst at CHS Hedging LLC.