Slipping crude oil prices intensify investor fears of weakening global oil demand; U.S. crude oil slipped to $82.95 on Wednesday amidst worries of Europe's unfolding debt crisis, while Brent crude slipped below $97, declining for the fifth straight day, The Economic Times reported Wednesday.
On Tuesday, the Organization of Petroleum Exporting Countries (OPEC) and the U.S. government agreed that the second half of the year could bring even weaker global oil markets.
The U.S. Labor report, to be issued on Friday, will provide more direction as to the future of global oil prices, and whether investors will place their money in a currently risky market, CNBC reports.
Saudi Arabia has increased output to 10 million barrels a day, bringing the OPEC oil supply to 31.6 million barrels a day, far above the 30 million target set by OPEC in December. Some price hawks are calling on Saudi Arabia to rein in this extra production, which Saudi Oil Minister Ali al-Naimi has called a "type of stimulus" for the economy, according to The Economic Times.
Although Alaska crude closed on Wednesday at nearly $99 a barrel, some in the state are watching nervously. Oil taxes, fees and royalties fund around 90 percent of Alaska's budget. The higher the price, the more state coffers bulge.
It remains to be seen if the dropping prices will have any effect on the oil tax debate which has been consuming Alaska's political discussions, and will surely have a big place in the upcoming state legislative races.