The oil price has crashed to more than 50% in just 5 months. Is the oil price cut good or bad? Are we winning at all?
Drivers are happy, the cost of filling a car is cost less than half the cost 6 months ago. Soon commodity prices will be follow. The common family household will be happy that budgets will be stretched much better. On the contrary, oil funded projects lined up are being mothballed as they will not be commercially attractive anymore. Companies involved in the oil industry are laying off. Unfortunately, I was one among them.
Shale oil production which started this price cut is now losing to OPEC as indicated by the increasing mothballed drilling projects. Will this be a sign that plummeting oil price has reached its bottom? Only time will tell. For those affected by this unstable oil price like me, let us hope for the best.