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Unusual dynamics are at play in global oil markets. Oil prices are tumbling down as markets continue to adjust to the higher supply resulting from the US shale boom, Canadian sand oil and unabated production by the Organization of the Petroleum Exporting Countries (OPEC).
The spot price has lowered to $80 per barrel. Brent futures for December settlement, dropped as much as 50 cents to 79.88 $ a barrel on the London-based ICE Futures Europe exchange as on November 13. The January 2015 contract is as well down to 80.88 $.
The US benchmark, West Texas Intermediate (WTI) is also down to 77 $. Even at these levels the prices are higher than the average global cost of producing crude oil which is 25 $ per barrel and the US average cost of 33 $ per barrel....
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