Crude Oil Prices Drop Below the May 2010 Price

oilNovember 27, 2014, LONDON In the afternoon session of the ICE Futures Crude Oil Prices drop below the May 2010 price of $67.75 before recovering to close at $69.11.

The Organization of the Petroleum Exporting Countries (OPEC), twelve Oil Ministers meeting Vienna, Austria, choose to hold to their production levels. OPEC typically lowers production levels when Crude prices drop as they control the supply side of the supply demand economics.

Current OPEC production levels are set at Thirty Million Barrels a day. However, in recent months they have been over producing.

U.S. markets were closed Thursday for the Thanksgiving Holiday, but will resume trading Crude at 6pm Eastern Standard Time.

On Wednesday November 26th, Ali Al-Naimi, oil minister from Saudi Arabia was quoted that he thought the crude oil market “will stabilize itself”, following Russia’s Oil Czar comments that Russia would not cut production to lower supplies and stabilize prices.

Pressure has been put on the crude markets by the U.S. shale oil production and a demand fall off in Europe and Asia. Since June of this year Crude oil prices have dropped close to 30%.