OIL FALLS BACK TO FAMILIAR TERRITORY
Oil started out the year rocky, dropping to record lows. It then staged an epic rally to come back above $40, and there was even speculation of it hitting $60. However, it now has fallen back to that sub-40 mark. The price of oil sank 4% to $39.86 a barrel. It has now dropped by 22% since its year high at $51 a barrel. Many investors had been fooled by oil’s rally back from the massive crash in 2014. One of the realizations that came about was that the U.S. could make the problem worse by drilling, due to the fact that the oil glut is still very real.