Oil Production Sees Record Highs As Prices Decline
For the ninth consecutive session, US West Texas Intermediate crude fell again, signaling a further decline in oil prices. This comes in as the longest straight decline in oil since July of 2014. WTI December 18 futures contract prices fell to $60.67 on Thursday, a 1.62% decline. This is the lowest closing price since March. Despite an October 3 closing high of $76 a barrel, the domestic crude oil market is down over 20%.
An overabundance of supply has kept prices down domestically. Oil production is at a record high of 11.6 million barrels per week, and the crude inventories increased by 5.8 million barrels at the week’s end of November 2, which is double the amount that analysts expected.
The current drop in prices comes as a contrast to the sharp rises that started in late August and continued rising through the beginning of October.
-Stephen Schork of The Schork Report stated, “The last three weeks of October going into November, the market has corrected, that bubble has popped, and now we’re more focused on the reality of heightened production. We’re at a point now where we’ve come down a long way in a short amount of time, and that’s what happens when bubbles pop.“
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