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U.S. Crude Below $40

by Elizabeth Alford on December 7, 2015

Oil prices began dropping again last week and have hit levels not seen since 2009.

Related: Crude Prices & the Stock Market: A Wild Ride

The decline began last Wednesday when U.S. crude fell to $39.94 per barrel Wednesday, the first time since August oil has settled below $40. This morning Bloomberg is reporting WTI crude a little over $36.

There is speculation that this sudden drop is due to OPEC’s decision last Friday not to cut its production target, which is problematic due to the record crude reserves we currently have. The U.S. Energy Information Administration reported last week that the commercial stores of crude rose by 1.2 million barrels to a total of 489.4 million barrels for the week ending November 27th.

Other analysts believe that we may not see a true bottom until Iran has re-entered the market. In the following clip from CNBC, one strategist shares why he believes oil prices will remain at around $40 a barrel for this year.

The drop in crude prices is tough news for an already struggling oil and gas industry. News of the drop brought down the shares of energy-related stock causing many investors to be on the hunt for rock bottom prices.

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