Production cuts may no longer be as effective at propping up prices because electric vehicles are cutting into global demand.
Since the end of September, Brent Crude has been sliding — down to the $84-a-barrel range, more than a 10% decline in just over a week. This is also playing out at the pump, with gas down about eight cents a gallon in the last week.
The addition of American crude oil to the Brent benchmark had an immediate impact on global oil prices.
Dated Brent, used to set the price of most of the world's oil, will include supplies from Texas for the first time.
The $60 price cap was designed to limit Russian oil revenues, while keeping the oil itself flowing to avoid a global price shock.
Oil companies have been hampered by labor and capital costs and $70 a barrel may not be enough to lure them.
"Crack spreads" are higher than ever. But investors aren't interested in dumping money into fossil fuel expansion.
Brent crude rose above $113 a barrel Wednesday — the highest level in eight years.
“It is ultimately about supply and demand,” one expert says. And COVID-19.