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The Why: Cost of oil is decreasing

There's a number of reasons we're seeing a glut of oil on the market.

GOLDEN VALLEY, Minn. - Oil prices are in a history-setting tailspin.

The U.S. benchmark, West Texas crude, has descended into a bear market - even though they were at a 52-week high last month.

So why are oil prices taking a dive?

Our main culprit is oversupply. There's a number of reasons we're seeing a glut of oil on the market.

According to the International Energy Agency, OPEC upped production in September by 100,000 barrels a day, raising total production to a one-year daily high of more than 32 million barrels.

As if that isn't enough - companies here in the states are producing a record 11.6 million barrels a day.

Now let's look at Iran. Even though the U.S. has placed sanctions on that country's energy sector, eight countries around the world are still temporarily allowed to buy their oil.

No one expected Iran to be able to produce at full capacity.

Our second culprit is maintenance. At this time of year, many major crude-oil refineries plan shutdowns.

So like a bear preparing for hibernation, they ramp up production in the fall so they can store away inventory for the winter.

Our third culprit - politics. President Donald Trump has led a consistent push for lower oil prices.

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