Crude oil prices for December delivery suffered major losses Tuesday on word Saudi Arabia was adjusting its oil prices further to shore up its market position.

West Texas Intermediate for December delivery fell well below the $80 threshold in Tuesday, shedding nearly $2 per barrel in the opening round to hit $76.87. Brent did no better, dropping more than $2 per barrel after the opening bell to trade at $82.55 for the December contract.

Long-term contracts traded Tuesday show WTI staying well below the $80 mark through 2016. Brent rallies toward the $90 mark.

The plummet comes as Saudi Arabia cut its price to the U.S. market, which may be a sign it's working to compete amongst major shale players in the United States. For Asian economies hungry for more energy, but slowing down, the lead producer in the Organization of Petroleum Exporting Countries hiked the price.

Most OPEC producers need less money per barrel to keep output steady than their American shale counterparts. The break-even point in shale is about twice as much as elsewhere.

That's led some in the industry to view the recent price fluctuations as a "price war" rather than a reflection of shifting supply dynamics in North American and demand in Asia.

Dave Lesar, the chief executive officer at oil services company Halilburton, told Bloomberg News oil prices should enter a period of correction by next year.

"Despite what people are thinking, demand is creeping up, albeit at a lower rate than it has been," he said.