The bad news for investors interested in oil continue. The price of the precious commodity have dropped again, approaching the level of $64. The drop in price was caused by the constantly increasing oil reserves and production in the United States, despite OPEC’s best efforts to keep extraction levels low.
This week the United States reached a new high in their oil production with an output of 10.27 million barrels per day, according to the Energy Information Administration. This number is significant not only compared to previous US outputs, but also because it is greater than what Saudi Arabia produces. Other fuel supplies in the US are also growing.
As of the writing of this article the Brent crude is trading around $64.04, while American crude oil was at $60.61.
The decrease comes after a day of gains that were based on a confirmation by OPEC that they would still continue with their agreement to cut back production. However, this does not seem enough at the moment.
