One of the most complicated subjects ever. Trying to understand the reasons why crude oil could drop 45% in less than 6 months is a mind bending exercise.
There are so many factors that influence the barrel price that any five or six that you could pick, would be only a beginning.
Worldwide economic situations on a by-country basis are just a part of the overall price fall, though indicative of the shaky GDP in the largest nations.
While the low price is being touted as a chance to grow the US GDP, the offset in job loss may prove a cure worse than the disease.
China, Russia, OPEC, Venezuela and a score of other countries are in the middle of this change.
This article mentions some of the individual factors:
Ten Reasons Why A Sustained Drop In Oil Prices Could Be Catastrophic
Following the pundits on TV and in the financial media only adds to the confusion. This week, so far, the VIX is up 56%... confirming the uncertainty.
And so we're left to wonder if the $15 we'll save at the pump will be worth it. The noise factor suggests a new $1/gal tax to pay for infrastructure. At the same time, is the worry about leaving the oil in the ground would leave a return to higher prices with higher taxes.
Has anyone here seen a comprehensive explanation that makes sense?
... and yes, I know that there are other threads on the subject of investment in oil stocks. The future of oil as a factor in international economic stability will be extremely important in the near term.