High Plains oil producers received a tough blow this week, as oil prices fell once again on a persistent oversupply of worldwide crude.
According to OilPrice.com, recent data suggests that the world will soon touch a milestone rate of oil consumption: 100 million barrels every day. In a normal world, increased demand would mean increased profits.
But the International Energy Agency is reporting record production from OPEC members, driving down expectations for demand growth. Producers may get a break when OPEC meets on Nov. 30 to approve a plan to cap production. But worldwide markets remain skittish, as output from Middle East producers has been surging despite the group’s promises of a cut.
Mark Waggoner, president of brokerage Excel Futures, spoke with The Wall Street Journal: “[OPEC’S] trying to come up with a deal, but pumping more oil out than it ever had,” he said.
