Saudi Arabia announced an all-out-war in the oil market and vowed to return to the tap and produce even more oil. For Saudi Arabia, they want to inflict pain on Russia. For Russia, this action would help take down American shale industry that has been a problem to the supply glut since 2014.
We will now be seeing cheaper oil prices. Analysts are seeing 26, a historical low around 2016.
The picture is very clear right now that it will take quite a while and a whole lot of effort for oil to go back to year-highs.