It's amazing that less then a month ago, the WSJ column on energy prices was predicting higher oil prices due to the loss of Iranian oil, the continued decline in Venezuelan production and the Saudis hitting their ceiling of maximum production ability and now, oil prices are in free fall.
China has stopped import of US oil (IIRC 300,000 barrels per day), s we have that "glut" on the market. In addition, the consolidation of shale and domestic producers after the previous price collapses "thinned the herd", and allowed the more efficient producers to obtain those assets.
Now we have this:
http://www.msn.com/en-us/money/markets/texas-is-about-to-create-opecs-worst-nightmare/ar-BBPWgMM?ocid=ientpPlus when we went through southern Illinois going to and from Johnson County, I saw every pump running. Usually they only are pumping when oil prices are high and they are shut down when prices are low. So here we are with prices dropping and they are still pumping. That's a real change.
Oh, and I prices I saw at the usual stations I pass on the way to work today were uniformly $2.29. I will not be surprised if prices drop below $2.00 in the near future.