Mexican Media Brands
U.S. Oil Prices Sag Below $27 Per Barrel
The price of the U.S. oil benchmark, West Texas Intermediate, fell nearly 7% on Wednesday to close at $26.55 per barrel, its lowest price in more than 12 years.
#economics
Share
The price of the U.S. oil benchmark, West Texas Intermediate, fell nearly 7% on Wednesday to close at $26.55 per barrel, its lowest price in more than 12 years.
The international petroleum standard, Brent crude, dropped 3% to $27.10, also a 12-year low.
Traders predict further declines as the already-glutted oil market roils over Iran’s return to the legitimate oil exporting market. Analysts say the world currently is pumping about 1 million more barrels of crude oil than it consumes.
The result is an inventory of some 1 billion barrels of unused oil, according to the Paris-based International Energy Agency. IEA predicts the excess supply will expand by 285 million barrels by the end of this year, thanks to a sluggish global economy and the reluctance of oil producers to cut output.
The Organization of the Petroleum Exporting Countries, which accounts for roughly 40% of the world’s oil production, expects oil prices to stabilize this year. The cartel forecasts petroleum prices will rise to $70 per barrel by 2020.
RELATED CONTENT
-
GM’s Mobility Vision
1. Zero crashes 2. Zero emissions 3. Zero congestion This vision leaves out a very important element: economics.
-
Mazda, CARB and PSA North America: Car Talk
The Center for Automotive Research (CAR) Management Briefing Seminars, an annual event, was held last week in Traverse City, Michigan.
-
Ford’s $42 Billion Cash Cow
F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.