A lower global price for oil may be due to the glut of shale oil being unearthed in the U.S., reports the Wall Street Journal.
Shale oil production has gone up by 50% every year for the past three years, the paper reports.
Read: Challenges aplenty for Canada’s energy sector: CIBC
That rapid development has already been felt in the market, but its impacts have been somewhat hidden by other crises in the oil sector, such as halts in production in Libya and other places, and the volatility of the Arab Spring.
Now, analysts say the world is adjusting to these issues and oil prices are falling—revealing the true effect of the massive supply of shale oil.
Read more here.
How the shale gas boom will impact the economy