This post is meant to address some issues from some people thinking that GEJ is responsible for the falling oil price. Even a reverend came out to say that the current administration has bad luck and that's why oil is falling. Don't know whether that one even attempted school
Copying someone answer from an authentic website I visit;
link: https://www.quora.com/Oil-and-Fuel-Prices/Who-is-responsible-for-the-current-oil-price-drop-December-2014

It's the United States and China. Suddenly, the United States is producing millions of barrels of shale oil available that weren't available a few years ago. China is currently in a recession. As a result, they are consuming a lot less oil than they were in recent years.

The appearance of this oil and the reduction of Chinese demand has led to a supply greater than the demand. In such situations, classical economics tells us that the price of the item (or commodity) will drop.

So, while the increased supply is coming from the the United States, and the reduced demand is coming from China, mostly, the price drop is the responsibility of the market working as markets do. Consumers and producers are behaving in a rational manner. When there isn't enough consumer demand, producers will reduce prices to stimulate demand.

Many producing countries are in rough shape. Russia, Iran, and Venezuela are all experience severe dislocations because the price of oil has dropped so low that they can no longer afford to pay for the generous benefits they have been providing to their citizens.

I've read that the price of oil is dropping so low, that it may make it difficult for the shale oil producers to recoup their costs. If that's the case, then they will stop producing so much, and the price may go up again. Eventually, it may reach the point where shale oil producers get back into production, and then the price will go down again. I would expect to see a lot of volatility in oil prices over the next decade or so.

All I can say is that I'm glad I got out of my energy mutual funds a few years back. This should teach us that there are no truisms. The truism here, being that oil was an increasingly rare commodity, so the price could only go up. Turns out, that isn't so.


Of course, you can do you self a lot of good by reading other answers from Top people in the Website

link: https://www.quora.com/Oil-and-Fuel-Prices/Who-is-responsible-for-the-current-oil-price-drop-December-2014