Back in 2013, the West Texas Intermediate (WTI) Crude oil price benchmark was around $110. It’s plunged pretty steadily since the middle of last year, and this month it’s down 17%. Tuesday it fell below $34 a barrel for the first time since 2009, before rebounding to just over $36.
The drop in oil prices has surprised Wall Street. Back in March, analysts were expecting prices to rebound to $50 a barrel in the fourth quarter or better. Futures contracts were trading as high as nearly $64 a barrel a year ago. Analysts have now lowered their expectations. Here’s why oil prices are so low and why they could stay that way. Read more