Picture a rubber ball falling to the floor. It hits the floor and bounces up to a certain height. It then falls again and bounces, but not quite as high. This is what is happening with the price of oil right now.
Fracking rigs are shutting down in the US. But, I read that
Saudi Arabia will increase production to keep supply at the relative same position.
In the short term, expect oil to continue to fall, but with short periods of rising prices.
However, experts have warned that a sharp cutback in investment could see prices rebound to new highs over the longer term.
If your outlook is long term, now is the time to buy energy stocks.