Crude Oil is continuing on its downward spiral. On Tuesday morning, West Texas Intermediate crude futures in New York fell 4% to a low as $43.03 per barrel. Brent crude also fell to nearly $50 per barrel.
Oil prices continued to plummet after OPEC released its monthly production numbers and showed a July that produced a three-year high for output. OPEC has now overshot its production numbers for more than a year. OPEC continues to fight for market share amid an increasing North American market and competition from other regions.
Oil began to plunge in late June, falling by 20%.
With the barriers to entry much lower and shale continuing to increase oil production, many experts believe oil prices will remain low for the foreseeable future.
Macquarie analysts say commodities are reentering a “deflationary vortex” in which undersupply of the dollar is making it more expensive, and fewer dollars are buying commodities, creating an excess.
The chart at the top of this page shows the recent slump in oil prices.