Analysts expect the price to tank further in the year ahead as competing nations ramp up supplies. Aside from more US and Russian oil reaching the market, Iran will also return to the fold in 2016 following the lifting of sanctions. This backdrop has suddenly made investment bank Goldman Sachs' prediction that prices could drop to as little as $20 a barrel not so infeasible.
While lower fuel prices should continue to buoy consumers at the pumps, the world's recession-ridden largest oil exporters won't be celebrating. Signs of further declines in 2016 are also likely to have a profound effect on some of the biggest companies on the UK stockmarket. Aside from the oil exploration giants such as Shell (RDSA) and BP (BP.), plenty of industrial companies serving the sector have also come under fire from the oil price rout. High profile examples include Rolls-Royce (RR.), Weir (WEIR), Smiths (SMIN) and Rotork (ROR).
