Despite OPEC’s effort to rebalance the oversupplied oil market, prices have plunged back under $45 a barrel, according to Forbes.
In February oil prices moved past the $55-per-barrel mark for the first time in the last 20 months. However, prices sunk again due to a rise in U.S. oil production and increasing inventories. The continually expanding North American rig count indicates output is likely to swell even more in coming months.
The low prices have driven many companies out of the market over the last two years, but a silver lining remains. The companies that have been able to survive amidst the slump have been able to do so by reducing operating costs. This has brought the break-even from over $80 per barrel to under $40 per barrel.