Oil Price Plunges below 2008 Level

On December 21, the Brent price fell to $36.05, the lowest price since December 2008. Both Russia and Saudi Arabia are determined that their “enormous cash reserves will allow them to weather any price for as long as it takes to finally force upstart US shale drillers to turn off their spigots.” U.S. production has dropped from a high of 9.6 million barrels per day in April to 9.9 million bpd in September, and is expected to average 8.8 million bpd in 2016.