Weak Chinese demand for oil and overproduction oil are the causes for the slide.

1. Oil Prices Experience
Precipitous Fall, worst in ….
●
Oil has crashed
since 2014, worst
in 45 years
●
New projects are expensive to develop. Strong demand & less money for
drilling & exploration will reduce the glut.
●
Lower spending by oil companies expected
● Crude oil has declined to 44.56 / bbl.
● Forward curve suggests a downtrend more
than 1986
●
Saudi has refused to join Russia &
other major producers to reduce
prices
● Canada, US are producing more.
● Saudi pumps out record production. Could bankrupt many shale oil
companies before Saudi's reserves are depleted
●
Expected to spur demand in
excess of 1.6m bbl/day over
last year's average