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Oil Prices Dip Below $40 Per Barrel
Crude oil futures fell slightly below $40 per barrel on Wednesday, their lowest price since the global economic crisis six years ago, as producers continue to outpace demand.
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Crude oil futures fell slightly below $40 per barrel on Wednesday, their lowest price since the global economic crisis six years ago, as producers continue to outpace demand.
Analysts attribute the slide to a report that U.S. inventories of available petroleum have climbed for the 10th consecutive week.
The continuing pressure on oil prices may produce a heated meeting on Friday when representatives of the Organization of the Petroleum Exporting Countries convene in Vienna. The cartel’s largest producer, Saudi Arabia, has for months resisted calls from other members to cut output as it pushes to force weak players out of the market.
Analysts doubt Saudi Arabia will change its policy without evidence of a more permanent plateau in consumption. OPEC and the International Energy Agency continue to predict global demand for oil will grow by at least 1.2 million barrels per day in 2016 compared with about 1.8 million barrels this year.
But speculation that Saudi Arabia might relent pushed oil prices slightly above $40 on Thursday morning.
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