What Caused Oil Prices to Drop Below $60?

The video discusses the recent drop in West Texas Intermediate oil prices below $60 a barrel, driven by increased US shale production and OPEC's decision to maintain output levels. US and Canadian producers are adjusting spending but not cutting existing production. Analysts predict oil prices may stabilize between $40 and $70 a barrel, with the marginal cost of US shale production influencing the global price.

What is one of the main reasons for the decline in West Texas Intermediate oil prices?

• Increased US shale production

• Rising transportation costs

• Decreased global demand

• New environmental regulations

How has OPEC responded to the falling oil prices?

• By maintaining production levels

• By cutting production

• By increasing production

• By imposing export tariffs

What strategy are some North American producers adopting in response to low oil prices?

• Increasing production

• Raising prices

• Cutting capital spending

• Expanding into new markets

What is the predicted range for future oil prices according to some analysts?

• $60 to $70 a barrel

• $80 to $90 a barrel

• $30 to $40 a barrel

• $100 to $110 a barrel

What is the marginal cost of production now influencing global oil prices?

• The cost of deep-sea drilling

• The cost of traditional oil rigs

• The cost of shale production

• The cost of renewable energy