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Oil falls on news that Saudis are preparing for $60 US crude - Business - CBC News
If anyone hasn't been following the energy sector recently, oil has taken a massive nose-dive starting in September.
Combination of a massive increase in supply from shale oil plays and a slow down in demand for oil. Combine this with Saudi Arabia wanting to retain market share by keeping their production levels, thus lowering the price and forcing the U.S industry to shrink as certain wells are not economical at this point.
Are we in for a new era of low oil prices? Or can we expect to see OPEC cut production once they've pushed the more expensive oil producers out of the market?
If anyone hasn't been following the energy sector recently, oil has taken a massive nose-dive starting in September.
Combination of a massive increase in supply from shale oil plays and a slow down in demand for oil. Combine this with Saudi Arabia wanting to retain market share by keeping their production levels, thus lowering the price and forcing the U.S industry to shrink as certain wells are not economical at this point.
Are we in for a new era of low oil prices? Or can we expect to see OPEC cut production once they've pushed the more expensive oil producers out of the market?
