One of the most remarkable trends of the last months is the deep dive of oil. Oil is tanking! One reason is the US and its ability to exploit previously unprofitable repositories. Fracking has led to an oil glut, temporarily at least.
The US just became a net exporter of oil after decades of being an importer and now runs even out of storage for its new oil miracle. Other oil producers like those from the OPEC don’t want to lose market share and as a result are not cutting back their production.
Here is an alternative explanation. The world and especially the US is manipulating the oil price down in order to put pressure on Russia for its role in the Ukrainian crisis.
How low can oil go? At this time there are even numbers circulating like $20 per barrel. Not that it is wise to have price targets, but the market seems to consider everything possible. Of course, in the long run oil resources are limited. Unless someone makes a serious energy invention in the next years or decades, prices are eventually going to recover…