Oil producers are reeling from a slowdown in crude supply, which will force prices to fall as much as 4% over the next two weeks.
That will put the brakes on growth and help push the dollar higher, which could boost the Federal Reserve’s interest-rate policy.
But it could also add a new wrinkle to a year of volatile commodity markets.
Abm Corp. said Tuesday that its crude futures price fell to a six-year low of $60.05 a barrel.
It is the lowest level since August of last year, when Brent crude fell $40.03 to $60 a barrel in a session that was delayed because of a government shutdown.
The benchmark West Texas Intermediate crude contract for September delivery, which is a gauge of the market’s sentiment about oil, fell by $3.10 a barrel to $57.50.
Brent is up about $1.60 a share since the start of the year.
Abt Analytics Inc. said its global benchmark crude oil contract for October delivery was down by $1 a barrel at $60 per barrel.
That was the lowest since April.
Brent crude is up nearly $2 a barrel this year.
On Tuesday, U.S. crude futures fell $1 to $63.93 a barrel, the lowest in more than three weeks.
Brent futures for September delivered were down by about $3 a barrel on Tuesday.
Oil traders were expecting Brent to fall another $2 or so.
The drop in crude prices is a blow to U.N. Secretary-General Ban Ki-moon, who has been trying to revive the global oil industry and the U.K. and European Union are also pushing to lift the oil embargo against Iran.