Title: Why Crude Oil Prices Fall: 5 Lessons from the Past
Headings: Why the Price of Crude Oil Dropped in 2015
Why the Price of Crude Oil Dropped in 2015
The Strong US Dollar
Organization of the Petroleum Exporting Countries (OPEC)
Global Production
The Economy
The Iran Nuclear Deal

Content: Why Crude Oil Prices Fall: 5 Lessons from the Past
Futures & Commodities Trading Futures/Commodities Trading Strategy & Education
Why the Price of Crude Oil Dropped in 2015
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Evan Tarver has 6+ years of experience in financial analysis and 5+ years as an author, editor, and copywriter. Learn about our editorial policies
Evan Tarver
Updated Aug 23, 2019
The oil industry is full of booms and busts. Prices typically rise during periods of global economic strength and as demand outpaces supply. Crude oil will fall when the reverse is true, and demand cannot keep up with growing supplies. Meanwhile, supply and demand are driven by a number of factors: Changes in the US dollar
OPEC (Organization of the Petroleum Exporting Countries)
Production and inventory supplies
The global economy
Deals and treaties
Notably, 2015 offers an interesting example of how the five factors can conspire to send prices lower. At that time, the price of crude oil fell to less than half in less than a year, reaching lows that people had not seen since the last global recession. Many oil executives believed it would be years before oil returned to $100 per barrel. As of mid-2019, it looked as if they were right and some of the circumstances surrounding the 2015 drop continue to plague the commodity.