TORONTO -- Worries over a supply glut have pushed oil prices to settle below US$40 a barrel for the first time in more than three months.
The September crude contract for West Texas Intermediate oil fell 55 cents to US$39.51 a barrel.
The last time oil settled below the US$40 threshold was on April 18, when it was US$39.78.
Lower crude prices put pressure on the S&P/TSX composite index in Toronto, which lost 105.73 points to 14,477.01.
The commodity-sensitive loonie also felt the impact, dipping 0.27 of a U.S. cent to 76.32 cents US.
It was also a sea of red in New York, as the Dow Jones industrial average lost 90.74 points to 18,313.77, the broader S&P 500 composite index shed 13.81 points to 2,157.03 and the Nasdaq composite declined by 46.47 points to 5,137.73.
In commodities, the December gold contract was up $13 at US$1,372.60 as investors fled to bullion, which is seen as a safe haven during periods of volatility.
The September copper contracts gained a penny to US$2.21 a pound, while September natural gas was down four cents at US$2.73 per mmBTU.
