The Downside Of Lower Oil Prices In The U.S.


Brent Crude oil, arguably the most recognized global benchmark of oil prices, is currently trading at under $70 a barrel and there is a growing likelihood that it could trade lower, or remain near these price levels, for some period of time.

With worldwide demand for oil remaining weak and some of the world’s largest producers of oil continuing to pump oil at, or even above, their existing production levels, the supply/demand equation seems to be pointing towards lower oil prices as opposed to higher oil prices. The Organization of Petroleum Exporting Countries (OPEC) did not help matters in this regard by taking no immediate action to force a reduction in the worldwide supply of crude oil at its most recent meeting on November 27.

(Forbes)