Cutting the Prices: Oils price falls even lower. Why is It?

New Your Times

The price of oil has fallen down to 55 dollars a barrel. Since last summer oil prices have been cut in half. 50 % discount for consumer, but this also means a whole lot less profit for the producer.

Many believe though that OPEC is playing a role in the price cuts. Saudi Arabia is trying to have absolute price setting power over oil. Another is that, with so much oil OPEC is losing it power to set the price where they want them. This is allowing a competitive market to take place.

Only time can tell whether OPEC is losing t power, or are they trying to hold on to their absolute control over the oil market. I believe that OPEC is trying to cut off the profits that have driven the energy boom here in the United States. They are trying to stop countries from being energy independent.  

Is OPEC Behind the Falling Oil Prices?

CNN MONEY

Oil Price are, on a 5 year low. Price of a barrel is under 60 dollar mark; the national average per gallon has fallen from its height in April at 3.77 to 2.53. This price drop has been beneficial to consumers. AAA says that more people will be traveling this holiday season due to the price drop.

Producers though are feeling the squeeze. Their profit margin is shrinking, as price drop it’s getting more expensive to drill for oil. With the energy boom happening in the United States with fracking, some believe that OPEC is trying to stop the growth of the frackers to keep their monopoly on the market. The consumer feels the benefits of the price drop.