As the OPEC refutes manipulation claims and the US production surges, oil prices to stay low image

Even as speculation that the OPEC is manipulating artificially the oil prices, the organization claims it has no set price target for oil, according to Salem el-Badri, head of the Organization of Petroleum Exporting Countries, cited by the Wall Street Journal.

Global trade and equity markets remain bewildered by the fresh turmoil in the energy market and the price of gasoline has dropped again, as a consequence. According to the AAA Gas Gauge estimate, last week the price of gasoline across the US continued to fall by 12 cents and might plunge another 17 cents by Christmas. The price drop of crude oil has been attributed to a worldwide oversupply of petroleum – but the United Arab Emirates’ oil minister, Suhail Al-Mazrouei, said that Organization Petroleum Exporting Countries will not move to lower current production levels.

Meanwhile, in the US, the ongoing expanses in the production of shale oil have made the country the second-largest oil producer in the world and although the extraction method is more expensive than most others, production across America is expected to further increase as oil companies complete new wells. Underlying the expected continuation of the drop in gasoline prices, the US auto industry has recovered to pre-recession levels this year – with the traditional sales of gas-guzzling models, SUVs and pickups – surging again.