The likelihood of rising oil prices dimmed after OPEC declined to put a cap on production at its latest meeting in Vienna on Friday.
Oil prices fell below $40 a barrel on the news that OPEC couldn’t come to an agreement on a production cap. Led by Saudi Arabia, the oil cartel has declined to cut production in the last year, even in a market flooded with oil. The strategy is intended to squeeze out higher-cost competitors, like U.S. shale producers. And it appears to be working.