Oil prices hit another low on Monday as West Texas Intermediate crude dipped below $30 a barrel, the lowest level since 2016.
Coronavirus fears in addition to tensions between OPEC nations have fueled a glut, driving prices further downward.
“We’re really seeing this drop in oil prices initiated from the OPEC meeting where they were unable to make to a decision in terms of additional production cut,” says Matt Smith, director of commodity research at ClipperData. “If you look at WTI, it’s down 50 percent from early January. We’re just in a free fall here.”
What you’ll hear in this segment:
– How factors like coronavirus and the Saudi Arabia-Russia oil dispute are hurting prices,
– How Texas drillers are reacting,
– And how long this downturn could last.