This come as the Saudis and the UAE continue to try to drive down prices. It seems some in the OPEC cartel have taken exception to the fact that the United States was on its way to energy independence as we raised our output to 9.14 million barrels a day--the highest since 1983. Yousef Al Otaiba, the United Arab Emeirates ambassador to the U.S., said the UAE would not cut production no matter how low oil price might fall.
The Saudis and the UAE are taking no prisoners and while the U.S. energy producers are their main target, economic pain in Russia and Iran is not causing them to lose any sleep. Russia got a downgrade as Fitch downgraded Russia's foreign currency bonds to BBB-, one notch above junk. Iran is saying the drop in price is a conspiracy concocted between the United States and the Saudis, which can't be true because let's face it, the Saudi's and President Obama are not really getting along that well. The main point is the Saudis and the UAE are trying to rig oil by driving it lower to silence U.S. rigs.
The good news though is brought to us by none other than the princess of petro, Trilby Lundberg. Trilby and her widely followed Lundberg survey reported that gas prices fell a whopping 26.92 cents in the last three weeks hitting $2.0549 a gallon. That is the lowest since price since April 2009.
Yet globally there are still fears that things are not so great. Copper prices hit a four-and-a-half-year low as weak manufacturing data in China weighs on demand sentiment.