It’s been a catastrophic 18 months for crude oil, which has suffered a dramatic 68% plunge due to a massive supply glut. Oil fell to a fresh seven-year low below $34.50 a barrel on Friday.
Many Wall Street oil experts believe that prices will rebound in late 2016. Yet more pain may be inflicted — some say it’s actually needed — before prices bounce higher.
Continue reading: Oil price crash could get even worse in 2016
Related story: DOW falls 150 points as investors eye oil options
Commentary by The Secular Jurist: This may seem counterintuitive, as consumers just love cheap gas to run their cars on, but dramatically falling oil prices is a bad thing in at least three very important ways. In addition to the above stated effect on the stock market which directly or indirectly affects everyone in the economy, declining demand for energy is a telltale sign of weak economic conditions, and – most importantly – low oil prices are an impediment to climate change mitigation because it creates a cost disincentive to convert to clean energy alternatives such as wind and solar power.