After the 2008 crisis, the Asian and European markets are beginning to recover slowly in 2012, but insufficient to keep oil demand at pre-crisis levels from 2008. From 2012 to mid-2014, oil prices moved around the average crude oil price from $ 97.70 per barrel.
In the summer of 2014, oil prices went down to record low levels. By the then decision of the OPEC member states that oil prices fluctuate according to the market relationship between supply and demand, there was the conversion of oil from political into economic goods, where the supply simply exceeded demand. By mid-2014, there was a decline in global demand. At that moment, many expected Saudi Arabia and OPEC to reduce their production to increase the price.
However, this did not happen at all. Saudi Arabia has actually boosted production so it can maintain their market share, all in hope that a fall in prices will cost US producers, who demand more price to make them profitable. US oil companies have shown more than flexible low oil prices. Oil companies have cut costs and increased production to continue offering their oil. Iraq has since 2014 almost doubled production, as it began to recover slightly from the conflict.
So the decline in oil prices that occurred in 2014 is the result of increased oil production in the US, less demand for oil in developed countries and a stalemate in the Chinese economy.
Fires in Canada, attacks in Nigeria, problems with the Zika virus in Venezuela led to oil supply difficulties, and in the middle of May 2016, the barrel price rose to $ 48.41 per barrel, which was the record for the past seven months.
OPEC members agreed on November 30 to freeze oil output for the first time since 2008, while oil prices amounted to about $ 50. Throughout 2017, oil prices ranged around $ 50 in spite of Hurricane and political turmoil in the Middle East.
At the end of November 2017, prices jumped to $ 59 a barrel due to the closure of the Keystone oil pipeline and the growth of optimism about expanding OPEC’s agreement on limiting oil production.