Oil slumps to lowest price in more than 6 years

The price of U.S. crude oil has tumbled to its lowest level in more than six years.

Benchmark U.S. crude fell $1.88, or 4 percent, to $43.08 a barrel in New York on Tuesday, its lowest close since March 2009.

The latest slide came as OPEC said its production rose to a three-year high. China also devalued its currency, suggesting that its economic growth was softer and could cause lower crude demand.

U.S. crude has been declining since reaching a high this year of $61.43 on June 10.

It is under pressure on several fronts. Big increases in production in the U.S. and Canada, along with sizable gains in Iraq and elsewhere, have boosted supplies. Saudi Arabia and other OPEC nations kept pumping crude at high levels, and Iranian oil could soon return to the market after being kept off by sanctions.

Meanwhile, worldwide demand is not as strong as expected because China’s growth has cooled and other economies have become more energy-efficient.

While drivers, shippers and airlines are enjoying the lower fuel prices spurred by crude’s slump, the oil industry is responding to lower profits with sharp cuts in spending and employment.

In other futures energy trading, Brent crude, a benchmark for international oils used by many U.S. refineries, declined $1.23, or 2.4 percent, to $49.18 a barrel in London.

This story was originally published August 11, 2015 at 5:13 PM with the headline "Oil slumps to lowest price in more than 6 years."