Oil News: Crude Oil Prices Near Seven-Year Lows
Oil News
In the 7 day Oil Forecast from November 30th the I Know First algorithm correctly predicted that both Brent Crude Oil and NYMEX Crude Oil would decrease in the predicted time horizon. Crude oil prices are now approaching seven-year lows.
Oil prices dropping isn’t much of a surprise, as the oil industry is currently in its biggest downturn since the 1990s. One of the reasons for the recent downturn is because the United States has nearly doubled its domestic production in the past six years, forcing countries like Saudi Arabia, Nigeria and Algeria to sell their oil to the less wealthy Asian markets.
While domestic oil production in the United States has increased dramatically over the past six year, it appears that production has been going downward. This is in large in part, because the US as well as Europe have begun investing more into alternative energy.
OPEC has responded to the decrease in demand by keeping the output at record high levels. This has led to instability in the market and has created a great oversupply of oil. Since the last year when OPEC decided not to cut production their prices have dropped 50%.
As it currently stands Brent Crude oil is now worth $41 a barrel, while NYMEX Crude Oil is worth a mere $38.
