case the cause for the weakness is twofold. First prices were dropping due to lower global consumption from the virus. China now the biggest importer has cut demand sharply.
OPEC and Russia tried to reach an agreement to cut production but failed. So Saudi Arabia opened the valves to full production.
Lower demand and higher production is causing prices to collapse. But Saudi wants everyone to fall in line or else.
The results will be sub 2 cents per gallon for awhile and close some high cost production like shale. This will involuntarily take production off the market.
Consumers will respond by buying even more SUV’s and trucks.
Eventually, higher demand will come back and there will be a whipsaw effect and prices will spike.