Crude oil just keeps falling
Crude oil continues to be in free fall.
On Friday, West Texas Intermediate crude futures in New York were near their lowest levels since early 2009. WTI futures fell about 1% to as low as $36.66 a barrel.
Oil's slide has continued virtually uninterrupted since the OPEC meeting earlier in December in which the cartel decided it would not reduce production. WTI is down nearly 20% since December 4.
Since then, we have received even more signs that the global supply glut is not going away anytime soon. On Wednesday, the Energy Information Administration reported a build in US inventories by nearly 500 million barrels, against expectations for a decline in stockpiles.
And Thursday night, hedge fund manager Jim Chanos said on CNBC that if he were a member of OPEC, he would be pumping as much oil as possible "because it might not be worth a whole lot by 2030."
His argument was less one of a supply-glut and more to the point that use of electric and solar energy is on the rise.
All this, and the dollar's continued rally, are keeping oil prices at multiyear lows.
Here's a chart showing the recent drop in WTI:Investing.com
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