Texas Business -With a dwindling global growth, the oil prices is being hit hard.Now at 10 percent lower than the previous week.The consumers are happy after a long streak of increase.
West Texas crude futures is down by 2% after the US government inventory reports showed a 8.7 percent demand decrease consisting of distillates, fuel and heating oil.
The US crude oil stocks also drop by 2.45M barrels to 365 M barrels as reported by Energy Information Administration.
West Texas Intermediate Oil drop of 1.5% through its 100 day moving average of $99.25 to $89.5.
Gasoline on the other hand increased by 3.8% after a fire happened to a refinery in Saint John's Brunswick.
RBOB gasoline future was only up by 1% after the afternoon trading.
Experts said that there is a large of oil supply since OPEC has been on it's all time high in retrieving oil while the demand is down.
Saudi Arabia also believes that the current Oil prices is not truthful and they will continue to increase oil production. Iran and Iraq also contributed in the increase of oil supply. US also increased to 6.5 M barrels a day which is the highest since 1997 records.
"Here' in Texas, it's getting to be like an 18 year high. We'll probably get to over two million barrels a day by the end of the year," said Andrew Lipow, president of Lipow Oil Associates. . "Texas oil production is up a half million barrels a day in the last twelve months. That's amazing. That increase is about equal to the entire output of California or Alaska."
Texas production is about 1.8 million barrels a day currently, he said.
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