With worries of too much supply and not enough demand of crude oil in the United States, the cost of oil slid below $68, falling to rest at $67.96, the lowest it had been since August 17. This is a big change from the very volatile previous month where investors saw the price of oil drop to $65 and then rise to $75 and constantly fluctuate. With the holiday weekend coming into play, there was little trading done, especially with many traders taking an extended weekend.
OPEC continues pumping at their high levels despite slight drop in price of oil.
There were other people who believed that oil prices would fluctuate due to Tropical Storm Erika, but this didn’t even happen. For some traders, it was as if nothing mattered and they weren’t interested in volatility.
OPEC is likely to keep their pumps going. Despite the fact analysts suggest that OPEC is pumping too much, they can’t be swayed because they are ecstatic that despite the amount they are pumping, the prices have stayed around the $60-$70 range. Most people aren’t concerned about oil prices. They are more worried about the stock market and where the dollar is going to be which has allowed oil its consistent level.
It is believed that oil will slide below $65 for the October supply which could make for a more inexpensive winter season if it stays at those levels. With winter coming and the United States known for consuming huge amounts of oil during those times, there is some concern about where the price may go. With OPEC continuing to pump the amount of oil they are, it may not go up, but it has much room to go down. Whether it happens or not, though, will rely entirely on people and when they decide to buy.