The oil surplus is so large, and demand is not growing as it did, that the price of oil has fallen so far that oil drillers have stopped drilling, and have decided to not finish many of the wells they drilled. They can return to the wells later, but probably won’t do so until after the price is above $85/barrel; and that is expected to happen soon. The surplus accumulated even during crises that curtailed production in countries that traditionally were large exporters: Libya, etc. The US decline partly explains the very low US GDP growth as well. The dynamics that created the situation are not likely to change. Oil prices may remain low for longer than expected.
“The U.S. Production Decline Has Begun” – Reslience
Pretending Not To Panic 