An Economic Perfect Storm Is Causing Oil Prices to Drop to New Lows

by Dramelin 10:30 PM 0 comments

A perfect storm is on track to force oil below $50 a barrel, driving a sudden drop in the stock market on Wednesday.
Meanwhile, U.
S.
oil production continues to grow closer to 9.
1 million barrels a day, the highest level in more than a year.
For traders, $50 a barrel is considered "the fail-safe" for the oil market, but ? as this perfect storm brews and prices fall below that level ? the new target could be $42 a barrel.
Tom Kloza, the global head of energy analysis at Oil Price Information Service, said that no one should panic yet.
President of Lipow Oil Associates Andy Lipow told CNBC that if oil prices goes below $50 a barrel, market watchers can expect more talk from oil ministers about extending the OPEC agreement another six months when producers meet in May.