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.
China’s credit rating has been downgraded from stable to negative, and the U.S. dollar is projected to be stronger in the first half of next year.
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.