Capital Spending

The Cost of Cheap Gas

gas station

The price of a barrel of oil has dropped from over $100 to under $50 since June 2014. This decline can be measured by looking at the Brent Oil which is the international index or West Texas Intermediate (“WTI”) which is the U.S. index. Why was there this sharp decline? Like all commodities it is about supply and demand. When the supply is up and the demand is down prices decline.

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