The cost of a barrel of Kansas oil has fallen by a third in the last two weeks, as it has elsewhere. More importantly, this week it fell past the key $70 a barrel mark that several Kansas oilmen say is the tipping point for when they’ll go out and drill new wells.
I’m guessing it has local oilmen rattled, but probably they’re taking a wait and see attitude before they cancel their orders for oil services contractors and lay off workers. The price snapped back slightly so far Friday and it looks like OPEC is swinging into action to cut production.