Afternoon Coffee: Oil prices Hit 11-Year Low, Prices Expected to Remain Low in 2016

Brent crude hit an 11-year low during trading today, sinking 2% to $36.05 a barrel. The drop is due to a growing oil supply that is expected to outpace 2016 demands.

Oil prices are expected to remain low in 2016. Goldman Sachs, for example, predicts oil will average $38 a barrel in February. The firm also said oil may have to crash to $20 a barrel before oil production scales back.

Amazon is looking to lease as many as 25 airplanes from companies including Atlas Air Worldwide Holdings Inc. and Air Transport Services Group Inc. to start its own freight operation. Amazon reportedly has told air-cargo companies it hopes to be using planes for delivery service over the next three years.

The vacancy rate for warehouses, manufacturing and other industrial spaces in the U.S. hit a 14-year low during the third quarter of 2015, falling to 6.7%, a new report stated. The trend is expected to continue in the beginning of 2016.

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