Feb 8, 2017

OPEC considers more cuts as oil resumes its descent

OPEC and other oil exporters are considering extending the length of their oil-production cuts, Bloomberg reports. The news comes amid a more than 4% decline in the price of WTI crude over the past two days.

Oil fell after a report Tuesday that U.S. crude inventories rose by 14.3 million barrels versus a 2.5 million barrel estimate, and on news that Chinese demand for oil in 2016 was at its lowest in three years.

Why it matters: Weak Chinese demand and higher U.S. production were the twin forces that lead to the 2014 crash in prices, and it looks like they will team up again to keep your gasoline bill low.

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