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Oil price collapsing, could set new low

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Oil prices are getting crushed and could retest August's lows as global oversupply shows few signs of abating soon.

"The realization of a mega-glut is finally registering within the market," said John Kilduff, analyst and partner with Again Capital. "I think we're probably in the midst of another leg lower here. It might not go straight down but we're on target to make new lows for the year."

West Texas Intermediate crude futures was down 2.75 percent at $41.75 per barrel. WTI set an intraday low of $37.75 on Aug. 24. Brent crude was down nearly 3 percent Thursday at $45.23 per barrel.

"We're awfully close to $40, and it certainly feels like it wants to test the lows we saw earlier this year," said Andrew Lipow, president of Lipow Oil Associates. Gasoline was also sharply lower, with RBB down 4 percent at $1.27 per gallon.