Oil Prices Dropping
Denver, Co – Oil prices in Montana, North Dakota and
Wyoming have dropped dramatically in recent weeks, to the surprise
of independent producers.
Cuts of up to 30 dollars a barrel off the posted regional prices
are being reported in some places in the region.
Some producers are shutting down wells, rather than selling oil
at the reduced rate.
Producers aren't sure what's behind the pricing discounts, but
say factors may include the country's static refining capacity,
increased production in the Canadian Tar Sands, and limited
capacity on pipelines.