Crude oil continues to move lower, helping consumers but becoming an increasingly problematic trend for oil producers around the globe. Bobbi Rebell reports.
The proof is at the pump. Gas prices now averaging below $2 a gallon for the first time since 2009 according to Gasbuddy.com. It's a tangible sign of how dramatically oil prices have fallen. On Monday Brent crude oil prices hit their lowest level in more than 11 years. U.S. crude flirting with seven-year lows. The key reason is simple: global supply has been swelling. And demand is tepid at best. Global suppliers have been digging in their heels, no one seems to want to be the one to hold back on supplies. John Kingston, President of the McGraw Hill Financial Global Institute, sees possibly falling another 15 percent. SOUNDBITE: JOHN KINGSTON, PRESIDENT, MCGRAW HILL FINANCIAL GLOBAL INSTITUTE (ENGLISH) SAYING: "It's been a game of chicken for quite some time. And, quite frankly, nobody has blinked there. And, so, I don't know that anybody is going to blink. The U.S. production is not controlled by some sort of central entity that decides to cut output." And soon more oil will be coming to market from countries like Iran and Libya. Reuters' Ernest Scheyder: SOUNDBITE: ERNEST SCHEYDER, REPORTER, REUTERS (ENGLISH) SAYING: "Looking into 2016, there is a huge concern that the world will continue to pump more and more oil in places like North Dakota and Texas here in the United States, or in OPEC members, like Iran, Venezuela and Saudi Arabia that have just basically kept pumping oil regardless of the price." The drop has been great for consumers who get access to cheap gas. But the world's richest oil exporters have been forced to revalue their currencies, sell off assets and even issue debt for the first time in years as they struggle to repair their finances.