Minnesota’s Gas Prices Fall Again; Oil Prices At 7-Year Low

Tumbling oil helped spur a rout in energy stocks, which were the worst performers on the Standard & Poor’s 500 Index.

Oil has slumped about 40 percent since Saudi Arabia led the Organization of Petroleum Exporting Countries’ decision a year ago to maintain output and defend market share by pressuring higher-cost producers.

Saudi Oil Minister Ali bin Ibrahim Al-Naimi rejected Iran’s demand for cooperation by saying December 4 that the market can absorb Iran’s surplus production and OPEC members do not need to reduce their output.

Oil prices slid Tuesday, approaching seven-year low points on a global supply glut and weak demand growth.

Olivier Jakob, an analyst at Swiss-based Petromatrix, says that current prices are trading below the so-called “shale band”-the $45-$65 a barrel zone where US shale oil remains affordable to produce”. The price recorded a 3 percent decrease, after it opened the day at $37.78 a barrel, according to official figures. “At some stage however, there may be a collective awakening to the immediate impact lower input prices have on profits”, he said in a commentary.

Russian Federation has said it will make more spending cuts if the oil price continues to fall.

Chipotle Mexican Grill fell another 2 percent. Australia’s S&P/ASX 200 retreated 0.6 percent to 5,123.80 and South Korea’s Kospi lost 0.4 percent to 1,956.39. Both Ezra Holdings and Ezion Holdings dropped, with Ezra closing 0.1 cent or 0.93 per cent down at 10.6 cents, while Ezion lost 1.5 cents or 2.48 per cent to 59 cents. The downbeat sentiment around oil production may throw up further headwinds for the rig builder, which has pared around 8.7 per cent over the past week amid a string of negative news. West Texas Intermediate, the US benchmark, will trade for $48 in the period, according to forecasters, compared with $37.88 Tuesday on the New York Mercantile Exchange.

Declining issues outnumbered advancing ones on the NYSE by 2,483 to 611, for a 4.06-to-1 ratio on the downside; on the Nasdaq, 2,186 issues fell and 654 advanced for a 3.34-to-1 ratio favoring decliners.

 Global demand for oil has been robust in 2015 but dwarfed by supply, swelling inventories and leaving long queues of ships at key ports around the world.

Internationally traded Brent futures were up 20 cents at $40.93 a barrel at 0525 GMT.

In a sign that USA production could dip, Baker Hughes’ November data showed USA rig count numbers were down by 31 month-on-month to 760 rigs. Exports contracted by 6.8 percent, accelerating from October’s 3.6 percent fall. Import volumes of crude oil, fresh fruit, cooking oil and some other goods rose. The euro was up 0.3 percent at $1.0875 while the dollar fell 0.3 percent to 122.98 yen.