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Energy

Crude Oil Drops Below $45

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published
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Crude oil prices, over $100 as recently as last summer, have dropped below $44.

Among the reasons given for the collapse are the slowing of the global economy. Recession or near-recession growth (or lack thereof) has hit much of Europe (some never completely dragged itself out of the last downturn) and Japan. Even growth in China is expected to drop well below traditional levels and perhaps as low as 7% this year. The only part of the world with impressive growth is America. And economists have fairly asked if the United States can carry the world on its shoulders alone.

One other aspect of the drop is bountiful supply. Fracking has opened new territory for exploration that just five years ago did not exist. Drilling in areas like the Gulf of Mexico has been helped by technology that allows companies to dig deeper. On the other hand, OPEC has held supply levels even. Additionally, Russia and Venezuela cannot afford to stop production, even if each losses money. Better to get some revenue than none at all.

Crude has dropped below $44 for the first time since depths in the recession in 2009. And, right now, prices do not have a safety net.

ALSO READ: Gas Prices Below $1.75 in 4 Cities

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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