Oil Prices Fall Sharply

(New York Times) Clifford Krauss - Brent crude oil prices sank again on Monday to $88.89 a barrel, leading to a near free fall in gasoline prices in the U.S. and leading energy experts to predict lower prices for the rest of the month. "Clearly there is a rift in OPEC, and that means we are more likely to see a price war over the next six months. Crude oil is teetering on the brink of collapse," said Tom Kloza, chief oil analyst at GasBuddy.com. Demand for oil is declining worldwide, particularly in Europe, just as the global market is flooded with oil. With the U.S. shale drilling boom, domestic production has reached 8.7 million barrels a day, a million barrels a day more than just a year ago. U.S. imports from OPEC countries have been cut in half since 2008. Saudi Arabia increased its production by 100,000 barrels a day in September, while Libyan production has increased in recent months by more than 500,000 barrels a day.

2014-10-15 00:00:00

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