>> Oil crashed on Tuesday, suffering its worst day in more than three years. I'm David Gaffin, Reuters Energy Editor. The US oil contract ended the day down 7%. And that makes 12 days in a row that this contract has fallen. And we've seen oil drop about 28% in the span of about 30 days of trading.
Now we're sitting with a contract at about $55 a barrel, and there are a number of factors going on here. Chief among them on the demand side is probably China, where we've seen a number of weak economic figures that has people worried that the country, which is one of the world's largest consumers of oil, is slowing down rapidly.
And as a result, we're going to see less demand, there. This is kind of offset by some of the other factors around in the world, such as Iran, where there are new sanctions coming in that are being renewed by the United States that will limit their ability to export oil.
And ongoing supply concerns with the likes of Venezuela, which continues to see its overall oil production continue to drop. As a result of the large-scale economic crisis that exists in that country.
t overall, the expectation is that demand is starting to sag. OPEC has said this, the International Energy Agency is saying the same thing.
And those concerns are what's driving oil prices lower right now.