The recent development of electric vehicles (EV) could result in oil prices crashing to $10 per barrel as a result of global peak oil demand in the upcoming years. With 70% of oil being used for transportation, it is possible for prices to drastically decrease somewhere around 2023-2025.
Chris Watling, CEO and chief market strategist at Longview Economics commented that although "We used to talk about peak oil in terms of supply, we now need to talk about peak oil in terms of demand." Another catalyst for the declining oil prices would be Saudi Amacro's planned IPO next year (which is set to be the biggest initial public offering yet). However, reports show that the IPO could possibly be delayed until 2019.
Also, the IEA published an Oil Market Report where indicators suggested that the oil market has made huge advances in rebalancing itself. The IEA also sees Saudi Arabia and Russia bond as a sign that this will strengthen the oil, gas, and renewable energy market. The world's two largest oil producers have announced a $1 billion fund to invest in energy projects. Ian Taylor, CEO of Vitol Group, believes that the price of the Brent barrel (the world's top crude trader) will fall almost $14 down to $45/barrel in 2018.
As the US is steadily increasing its oil production (with an average of 8.946 million bpd in January), we can expect to see another wave of investment in US shale. Ultimately, this spike in production could result in a decrease of oil prices to a level that has not been seen since 2015. Another factor which could potentially cause oil prices to decrease is that the U.S. dollar is rising. Republicans in the Senate recently approved a 2018 budget resolution backed by President Donald Trump which will cap a 10-year deficit hike at $ 1.5 trillion. This definitely helped improve the value of the US dollar which influenced internationally traded commodities such as gold and crude oil.
There is currently no guarantee that prices will continue decreasing (without ever going up) but these trends do point to the fact that oil prices may continue to decrease as a result of the large supply.