NEW YORK, January 21. WTI (West Texas Intermediate) cost in the USA is almost two times cheaper than milk. This was reported by Bloomberg.
The price of oil from North Dakota has dropped below zero
According to him, in the course of trading WTI fell to $26,19. The cost of one gallon (3,79 litres) of WTI crude oil are now about equal in price half gallon milk class III, which is traded on the futures exchange in Chicago, the Agency said. According to experts, this ratio was the lowest since 2004.
“The decline in oil prices has continued for 19 months and this is mainly due to the excess of supply over demand resulting from the growth of oil production in the U.S. and lower demand for oil globally, which, according to analysts, may result in the fact that rising oil prices will be delayed until 2017 or even further,” – said, in turn, the Wall Street Journal. According to her, some economists warn that “benefits to consumers from cheap oil outweigh factors such as loss of jobs, reduced investment and reduced government revenue”.
From high to collapse: the dynamics of oil prices since 2000
Oil prices over 40 years