While Americans were enjoying their thanksgiving feast this year, they received an extra blessing from two sources: the shale (cheaper) oil revolution and Saudi Arabia. Due to pressure from a surge of shale oil supply coupled with weaker global demand for energy, oil prices had, by the week before Thanksgiving, dropped about 30 percent from $110 a barrel last summer to $78 a barrel. Thanksgiving coincided with OPEC’s price setting meeting at which the Saudi refusal to cut production (restrict supply to boost the price of oil) has so far cut the price by another $8-$10 a barrel.Be gratefulOf course …read more
Source: American Enterprise Institute for Public Policy Research