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Oil is on its way for its worst annual price drop since 2008 as OPEC continues to refuse to cut production and the U.S. shale market continues booming.
Oil is on its way for its worst annual price drop since 2008 as OPEC continues to refuse to cut production and the U.S. shale market continues booming.
According to USA Today:
Crude oil prices have fallen by about 45% this year, and the key benchmark prices – West Texas Intermediate (WTI or U.S. crude) and Brent – were down again Wednesday.
Brent was down $1.71 at $56.19 on Wednesday morning. WTI fell $1.29 to $52.83.
In the past, OPEC has cut oil output to keep price afloat in times of supply abundance. But the group, comprised of 12 oil producing nations, have shown reluctance to lower supply this year, fearing that its market share will be eroded by heightened competition from U.S. suppliers.