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US oil prices have been declining for the longest in 34 years.


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Sunday, November 11, 2018 – 9:52 pm
| Last updated:
Sunday, November 11, 2018 – 9:52 pm

US oil prices dropped nearly 1 percent on Friday, temporarily falling below $ 60 a barrel, the longest in 34 years.

The benchmark price declined for the 10th consecutive day as US petroleum prices fell the most since July 1984, a 21% drop in one month, according to Standard & Poor 's.

The US dollar fell to $ 59.28 on Friday after it hit a four – year high of $ 76.41 on Oct. 3, reversing its earlier forecast that oil prices have reached $ 100 per barrel, the weakest since February. US sanctions on the Iranian oil sector.

The drop in oil prices has raised concerns about global economic growth, not only by investors' concerns that the economic downturn will slow the economy, but also because of the impact of stock-to-commodity shocks.

"The risk of rising fuel prices tends to be stubborn until the end of the year," said Michael Tran, Global Energy Strategy Manager at RBC Capital Markets.

Despite recent Wall Street rebounds, crude oil prices continued to plummet due to investor disappointments following Trump's decision to allow temporary exemptions for eight countries, including India and China, to continue buying oil from Iran. The fifth largest producer in the world.

President Donald Trump said it is a measure to mitigate the impact of sanctions on Iran. $ 100 or $ 150 per barrel that can happen very easily. "

Trump has said prices have fallen sharply recently due to intervention, but price declines have arisen because Saudi Arabia has recently increased to 10.7 million barrels per day and that American production in August exceeded 11 million barrels a day, increasing Texas production. For the first time in history, it defeated the United States by Russia and Saudi Arabia, the world's largest oil producers.

US stockpiles of 5.8 million barrels were upgraded last week due to a surge in Texas production, according to federal government, which rose 3 percent from the five year average.

Wall Street's energy sector investors are concerned about falling oil prices, but some analysts have warned that the oil crisis could be short-term, and Goldman Sachs and RBC have predicted that oil prices will recover due to the recent exemption granted to countries. Investors have been banned from purchasing Iranian crude oil due to concerns that future demand for Saudi Arabia and the United States will be limited, and US production in Texas is having difficulty entering the pipeline. 2019.

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