The boom-to-bust oil market is suddenly in another tailspin.
US oil prices plummeted 4% to $58.80 a barrel on Thursday morning. It's the first time crude has broken below $60 since late March.
The selloff comes as financial markets broadly tumble, with the Dow sliding 400 points, or 1.6%.
Oil's recent slide -- it's down 11% since closing at $66.30 on April 23 -- has been driven by two major factors.
- The deepening trade war threatens to badly slow economic growth around the world, hurting demand for crude along the way.
- Recent government reports show that oil stockpiles have unexpectedly jumped.
"The US-China trade war continues to weigh on sentiment, as does a weakening economic backdrop," said Matt Smith, director of commodity research at ClipperData.
The most striking thing about the oil slump is that it's taking place during a time when OPEC members Iran and Venezuela have been sidelined by US sanctions.