Crude oil has fallen by 4%, bringing barrels to their lowest prices in the global market since the heat of this past summer. As the holiday season approaches and travel increases, this drop means good news at the gas pump.
As U.S. gas prices decline, this indicates other factors could also be at play when it comes to crude oil price declines.
Further, prices have continued to fall in spite of efforts by OPEC+ to increase crude oil value. The organization vowed to slash prices in January 2024. However, this promise has done little to dissuade the market’s downward spiral.
Though Saudi Arabia has vowed to honor cuts, OPEC+ has yet to reach an agreement on production targets.