SPRINGFIELD, Mass. (WWLP) – Cheaper crude oil is helping consumers, but financial analysts want to know why oil prices have dropped this quickly?
Investors are looking at crude oil prices that are currently around $46 a barrel, a 60 percent drop from its all time highs. Oil supply is high in the United States at this point, and oil companies could start feeling pressure from investors to slow down production.
Financial analysts are now keeping an eye on the different markets around the world to see what happens with their oil consumption.
Mark Teed told 22News, “The world economy is kind of slowing right now and America looks pretty good. So what happens is that all the people from Europe and China bring their money here and it makes our dollar stronger and it makes oil prices go down. It’s an inverse relationship to the U.S. dollar.”
Teed expects oil prices to come down to $40 a barrel in the coming weeks, but it will depend on the overall market.