Oil Prices Dip Downward Again
CBJ — With a glut of oil waiting to be sold on a global scale, the commodity is down again after a temporary jump earlier in the week.
Brent crude is hovering at about $54 U.S. per barrel while West Texas Intermediate is going for about $46 per barrel.
If OPEC follows through on planned drilling cuts in 2019, WTI prices are expected to rise to about $55 per barrel and Brent should hit $65 per barrel, and maybe even a bit higher.
It has become quite clear the U.S. plans to continue producing its own oil, and so other countries — including Canada — are scurrying to try and find alternate markets for their oil. In the absence of that, OPEC plans to cut production to hopefully increase demand, and thus force the price of a barrel up by about $10 per barrel.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, agreed at a meeting earlier this month to limit output by 1.2 million barrels per day starting in January.