Oil Prices Plunge to Four-Month Lows Amid Chinese Stock Market Crash

Oil prices plummeted to four-month lows on Monday after a steep drop in Chinese stock markets sparked concerns about the economic health of the world's largest energy consumer. Brent crude hit an intraday low of $53.33 per barrel, its lowest since March 19, and US crude fell to $47.68 per barrel.

The sharp decline was driven by the slump in Chinese stock markets, which tumbled over 8% on Monday - the biggest one-day drop in eight years. This led European equities markets to a two-week low.

'Today's oil price fall has been driven by the slump in Chinese stock markets,' said Carsten Fritsch, senior oil market analyst at Commerzbank in Frankfurt.

The global supply of oil remains ample, with major oil producers in the Middle East Gulf competing for market share and pumping 2-3% more oil than needed. Oil market speculators have also cut their bets on a longer-term rise in oil prices, according to InterContinental Exchange data.