Oil is traded according to supply and demand. The big problem for the industry is that turning off a well reduces output and debt still has to be services making supply stable, but so is demand. That means small changes can have a massive impact. OPEC+ saying the would increase oil prices by 0.4% made oil prices fall by nearly 10%. Obviously lower demand even by a bit can have similar results.
Oil is traded according to supply and demand. The big problem for the industry is that turning off a well reduces output and debt still has to be services making supply stable, but so is demand. That means small changes can have a massive impact. OPEC+ saying the would increase oil prices by 0.4% made oil prices fall by nearly 10%. Obviously lower demand even by a bit can have similar results.