I’m often asked if I know, whether oil prices are going to continue to drop. I am not an economist, so I cannot answer this question directly. My daily price is based on the cost of oil to me.
So many things affect the price of oil. Right now, it appears that world-wide supply outweighs demand. Part of the glut is due to increased U.S. production as a result of hydraulic fracking. Last month, OPEC ministers, members of the cartel that produces one-third of the world’s output, failed to agree on measures to tackle the current oversupply. According to Abdalla El-Badri, OPEC’s Secretary-General, this decision effectively sets the level of the cartel’s output for the first half of next year.1
OPEC’s strategy behind the decision not to cut back its production is to make U.S. shale oil production less profitable, thereby squeezing out some U.S. producers. Should that occur, OPEC hopes to regain dominance in the world oil market.2
For the time being, oil prices are lower than they have been in about 5 years, and that’s good news for consumers. I can assure you, that Oppure Oil will always pass our savings on to you, by offering the lowest price possible in our market area of North Central Massachusetts.