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Can The Price We Pay For Oil Go Any Lower?

By on February 24, 2015
rising-oil-price

rising-oil-price

No one in the United States is complaining about the lowest oil prices that we’ve seen in years. For some $20 will now fill the tank, but what’s the real story behind these seemingly magical oil prices?

 

The answers lie in many places so let us begin to explore.

 

The short story is that the U.S., has finally begun pumping oil out at a rapid pace. According to the latest data the oil output from the U.S., rose by 15 percent in the past 12 months compared to the same time last year. Add in the fact that U.S., vehicle gas mileage has steadily increased you can see why oil import from other countries has declined by 4%.

 

Not all players are happy about this shift in power and that includes the Organization of Petroleum Exporting Countries (OPEC). There purpose is to ensure stable and fair market prices for oil. Saudi Arabia, one of the wealthiest countries and leader of OPEC has always had a squeeze on the market as they are one of the major suppliers of oil.

 

With the U.S., once a large client now producing more of their own oil and other countries facing economic problems and will take anything for their oil, we may see the prices continue to drop. We only touched on a few things, but there are many factors at play in this wild wild west of the oil world.

 

We will all just have to wait and see what happens, but I hope the prices continue to drop, makes those late night Taco Bell runs that much more satisfying.