A barrel of oil now costs less than a cheap bottle of wine.
U.S. benchmark crude was trading as low as $6.50 a barrel Tuesday, more than 80% lower than the start of the year. The dizzying drop reflected stark suffering in the global economy that has left vastly diminished demand for oil.
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But there's consequences:
Even if this supply and demand situation is a relatively short-term problem, the impact on the Texas economy could be long-lasting, according to multiple industry experts.
“With the oversupply of crude oil, and this price dropping, we are going to see massive layoffs, furloughs, and potentially the devastation of the oil and gas industry,” said Ramanan Krishnamoorti, Chief Energy Officer for the University of Houston.
FROM HERE
