Friday, November 23, 2018

Oil price drops to low not seen since October 2017, $50.42 for West Texas Intermediate crude on the New York Mercantile Exchange

After reaching a high of more than $86 a barrel in early October, which prompted warnings that it would climb further to $100, the oil price has since plunged by more than 30%.

Why?

Russia, Saudi Arabia, and U.S. oil are producing at record levels

China’s demand for oil byproduct, gasoline, dropped to a the lowest level in 13 months, according to a Reuters report on Friday

A rising dollar also helped to create a headwind for the commodity because the dollar-priced asset becomes less attractive to buyers using other currencies when the buck strengthens.

https://www.marketwatch.com/story/6-key-reasons-the-bottom-is-falling-out-of-oil-prices-on-black-friday-2018-11-23
https://www.theguardian.com/business/2018/nov/23/oil-price-falls-brent-crude-cost-barrel-oversupply-concerns

2 comments:

  1. So why am I paying $4.20 a gal for premium without cornflakes up here in Washington?......I'm running out of lube....

    ReplyDelete
    Replies
    1. there are gas stations here in San Diego that vary from 3.50 to 4.50... maybe its your choice of gas stations... or lack of competition between stations. Look on https://www.gasbuddy.com/ the prices near Everett Wa for example, are as low as 3.15 a gal

      Delete