The oil price finally starts to slide
Despite turmoil in the Middle East, the oil price has fallen sharply over the last three months. What’s going on?
After spending the last few years trading in a range between around $95 a barrel and $120 a barrel, the price of oil (as measured by Brent Crude) has slid sharply in the course of the past three months. The slump has come despite upheaval in the Middle East, and talk of economic recovery in the US.
What’s driving it? Despite talk of ‘peak oil’ in the past decade, the oil market is currently well supplied: America’s oil output is at its highest level in 40 years, while problems in Syria and Iraq haven’t affected major oil-producing areas. The pressure in the market was made clear at the start of this month when Saudi Arabia cut its prices rather than production.
A lower oil price is good for global consumers and the economy overall (less money spent on energy means more to spend on other things) – but it could be very tricky for oil-sector stocks and, potentially, for producers of alternative energy.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Magazine solutions - October 11, 2024
Puzzles and Quizzes Issue - October 11, 2024
By The Week US Published
-
Magazine printables - October 11, 2024
Puzzles and Quizzes Issue - October 11, 2024
By The Week US Published
-
When does early voting start in swing states?
The explainer Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania and Wisconsin
By David Faris Published