Despite historic production cuts, oil is dying

FORBES | Let’s face it, oil is going to $16. Why stop there? If the core economies of the world remain stuck in no gear, or slow gear, for much of the busy summer months, oil has no floor under it. Every major and minor league oil producing nation has pledged to reduce its crude oil output, whether they’re a member of OPEC like Saudi Arabia, or not, like the Russians and the U.S. Yet, despite taking upwards of 20 million barrels of oil offline, oil continues to fall because China’s economy has gone from a projected 5% growth for the year, then a worse case scenario, to 1.2% now, based on the IMF’s latest projections. That’s a runaway train compared to other emerging markets.

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