Crude prices continue their downward spiral with OPEC hitting four year lows on its basket price last week. The organization saw its basket price hit $70.80 per barrel on November 27, almost a $3 drop from the previous day’s $73.70.
While the drop has allowed consumers in the US to enjoy lower gas prices at the pump, the dip is hurting share prices of energy companies as well as the currencies of some countries.
At its meeting last week OPEC decided to maintain its current production levels instead of cutting back on flows to help stabilize prices. Prior to the cartel’s meeting in Vienna there was speculation that the group would ease back on production but they could not come to a consensus on what to do, so decided to do nothing
On the US’ NYMEX light crude oil has fallen to lows not seen in years, trading at $66.15 per barrel on November 28. Across the pond in London, Brent crude fell below $75 per barrel for the first time since September 2010.