Oil Under $40 Barrel on OPEC Production, Could Hit $20s in 2016

As crude oil prices continue their dramatic decline after a refusal by the Organization of Petroleum Exporting Countries (OPEC) to cut production, the key question now is, how much lower can oil go?

U.S. WTI crude oil futures traded under $40 a barrel on Monday, while Brent oil future are hovered around $42 a barrel, having tanked more than 4 percent since OPEC’s decision on Friday to keep its production ceiling at about 30 million barrels a day. Oil has now lost more than 50 percent over the past 18 months.


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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.