Oil prices could fall lower before they start to recover, thanks to U.S. oil production that continues to reach new highs, CNBC reports. It says Abdalla Salem el-Badri, secretary general of the Organization of Petroleum Exporting Countries, told a weekend conference that the organization’s efforts to curb new drilling have yet to slow down U.S. production, which recently hit a “multi-decade high” of 9.32 million barrels per week.
Analysts predict an eventual slowdown. But for now, surging production combined with a strong U.S. dollar could send oil prices back down toward $40 per barrel in coming months, the report says.
“WTI could take another leg down,” said Citigroup energy analyst Eric Lee. . “If there’s enough distress, if imports into the U.S. don’t budge, which they wont … if exports don’t rise quickly enough, which is a wild card, then producers at various locations need to shut in pipelines or run at low utilization so it doesn’t come to Cushing.”
WTI crude oil was trading at $48.71 per barrel Tuesday afternoon (March 10).
Every day somebody else has something different to say, two totally different scenarios at this point. This goes back to my post the other day regarding my thoughts on the oil prices. (Sissie’s opinion). At this point I wish people would just stop trying to speculate. This morning as I was reading another article, it was talking about oil prices and how it hasn’t even helped our economy, which our government thought it would. I would love to hear your opinions on this topic.