Stumbling to a New Equ'Oil'Ibrium: Understanding the Current Upheaval in the Global Crude Oil Market

Abstract

The precipitous decline in crude oil prices over the past year has sparked a renewed discussion around the drivers of the oil market and the role of OPEC. The decision by OPEC ministers in November 2014 not to reduce their quota can be interpreted in multiple ways: was OPEC deliberately driving out U.S. shale oil producers by depressing the price? Or were OPEC members instead overtaken by market forces beyond their control?