Indexed on: 09 Nov '16Published on: 05 Nov '16Published in: Journal of Petroleum Science and Engineering
Following four years of high stable prices at about 107 $ per barrel, crude oil prices have fallen sharply since summer 2014 and are projected to stay at low level for an extended period. There are multiple factors which are being considered behind this plunge in the oil's prices. Most observers have conjectured that domestic oil boom in the United States and Iraq is the major cause for the falling oil prices. Some have suggested that a major shock to oil price expectations occurred after the November 2014 meeting of OPEC, when they did not cut production despite the steady increase in non-OPEC oil production.