Slump in Crude Oil Prices Back to Blog

Dec 02


  • Created: Mon 7th Jan 2013
  • Erin

What’s causing the current slump in the nation’s crude oil prices?  Three possible explanations include:

1)      A concerted effort by the our federal government and Saudi Arabia to punish Russia’s current military push around the world.

2)      OPEC’s recent decision to maintain current production levels, thereby causing a precipitous drop in the price U.S. shale oil producers receive for their product.

3)      Worldwide demand for oil has fallen recently.

Whether current lower prices near $65 per barrel will continue is anyone’s guess.  At what point will U.S. oil producers cut back their current drilling pace is also under debate. Would OPEC purposely  join the U.S. in punishing Russia or would it intentionally cause harm to U.S. shale oil producers?  We at Anderson’s Drilling Reports have already noticed a significant reduced number of approved drilling permits, but this could turn on a dime after the holidays.

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