From Energy & Environment : Oil Prices: What's Behind The Drop? Simple Economics by Clifford Krauss Updated Feb 3, 2016
This a complicated question, but it boils down to simple economics of supply and demand.
United States domestic production has nearly doubled over the last several years, pushing oil imports that need to find another home. Saudi, Nigerian and Algerian oil that once was sold in the United States is suddenly competing for Asian markets, and the producers are forced to drop prices. Canadian and Iraqi oil production and exports are rising year after year. Even the Russians with all their economic problems, manage to keep pumping.
There are signs, however, that production is falling because of the drop in exploration investment.
On demand side, the economies of Europe and developing countries are weak and vehicles are becoming more energy-efficient. So demand for fuel is lagging a bit.
What happened to OPEC?
Unwillingness of OPEC to intervene to stabilize markets that are widely viewed as oversupplied. Saudi Arabia, UAE and other gulf allies are refusing to cut production. And Iraq is actually pumping more and Iran expected to become a major exporter again.
Is there conspiracy to bring the price of oil down?
No evidence to support the conspiracy theories!!!!!
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