The oil prices were always going to fall after the deal between the OPEC and Russia fell through. OPEC wanted a supply cut to the tune of 1.50 million barrels per day (bpd) which Russia was not willing fearing that the US would end up being the biggest beneficiary of the move. Meanwhile, Saudi Arabia decided to go ahead and increase production substantially and also cut the prices of crude sharply to all its customers across Europe and Asia. The idea was to undercut Russia on price. This move led to the sharp fall in the price of oil and it fell nearly 30% to the level of $31/bbl, close to the lows it had touched in the oil bear markets in January 2016. It is true that weak oil prices will help India curtail its trade deficit and its current account deficit. However, this fall also means that larger oil extractors and refiners like ONGC, OIL, IOCL and RIL will lose out. That is evident from the sharp fall in the stock price of these stocks.