Mexican Media Brands
Oil Prices Sink to New 11-Year Low
Oil prices have dropped below $35 per barrel, their lowest level since mid-2004.
#economics
Share
Oil prices have dropped below $35 per barrel, their lowest level since mid-2004. The latest decline continues a slump that began at the end of last year.
Volatile petroleum futures have slumped 70% below their level 18 months ago. Prices are being driven down by output from U.S. shale oil operations, the impact of more efficient vehicles and weak global economic growth.
The Organization of the Petroleum Exporting Countries, which accounts for about 45% of worldwide crude oil production, has propped up prices in the past by cutting output. But the cartel, led by Saudi Arabia, refuses to do so this time in an effort to defend its market share.
OPEC had hoped that riding out the slump would squeeze U.S. shale producers, restore prices and help it regain power over the market. But that strategy has not worked. In the meantime, lower prices are forcing OPEC’s weaker members to continue high output to support their economies.
RELATED CONTENT
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.
-
VW Warns of Higher Costs to Develop EVs
CEO Herbert Diess says the €20 billion ($23 billion) Volkswagen AG has budgeted to electrify its entire vehicle lineup won’t be enough to meet that goal.
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.