On Friday, U.S. oil prices hit a 6-year low, falling to $41.35 a barrel, according to CNN. Gas prices in the U.S. fell almost $1 to $2.62, and are believed to continue falling, according to CNN.
In July, the Organization of Petroleum Exporting Countries produced the most oil it had produced in three years, exceeding its output as other countries continue producing oil as well, reports Bloomberg.
In the U.S., crude oil supplies were 90 million barrels above average. The nuclear deal with Iran also leads many to believe that their output of oil will increase exponentially, which may push gas prices even lower, according to Bloomberg.
With the yuan being devalued, oil and industrial metals have been driven down, reports the Boston Globe . This will affect demand, causing the markets to have to adjust.
Other reasons for the drop in prices come from dwindling demand and the strengthening dollar. More efficient standards throughout the world are limiting the demand for oil and the strengthening dollar makes oil more expensive in overseas markets, according to CNN
