Today’s Energy Minute brought to you by Commissioner Ryan Sitton of the Texas Railroad Commission:
October was the worst month for oil prices since the downturn of 2016. In 2016, the price slump was driven by oversupply as the U.S. and other producers were, at some points, pumping nearly 2 million barrels per day more than the world used.
Typically cheap energy prices drive a boost in the global economy which led to a record economic growth in 2017.
This time around, oil prices are trailing the economy. As the economy and stock markets show sign of contraction, oil prices are slumping on concerns over demand.
Add in rising interest rates, a looming trade war and a strong dollar, and oil prices have shed over $10.00 per barrel in the last four weeks including $1.34 yesterday to end at $65.00 per barrel.
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