CALGARY — Energy stocks were down nearly six per cent on the Toronto Stock Exchange as oil prices continued to plunge following last week's five per cent slide.
Crude oil for January delivery was down nearly four per cent at $63.37 at around midday on the New York Mercantile Exchange.
Oil is off nearly 40 per cent since mid-summer, with the drop intensifying since last week, when the Organization of Petroleum Exporting Countries decided to maintain its production levels.
Meanwhile, a report by major U.S. bank Morgan Stanley says it will likely get worse before it gets better for oil markets.
Analyst Adam Longson predicts the global crude benchmark, Brent, could drop as low as US$43 a barrel in his most bearish scenario during the second quarter of next year, before prices start to recover.
For all of next year, Longson predicts oil prices will be around US$70, down nearly 29 per cent from previous estimates.
