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In response to
"(I misread the question as 'why are oil prices plummeting') -- nm"
by
Max
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Oh, oil prices are plumetting becasue US production has been on the rise thanks to shale oil, fracking, etc...
Posted by
Roger More (aka rogermore)
Jul 6 '15, 12:07
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It means the US is importing less, so countries that were selling to the US are having to find other customers and dropping prices to do so.
And the reason they are staying low is because Saudi Arabia - which has in the past been a swing producer, cutting production to keep prices high - has decided not to play this role, and it keeping production steady. They are betting that keeping prices low will deter investment in remote regions (eg Siberia) and new technology (fracking), which would increase their competition in the long-run.
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