In case you were on a submarine below the Arctic ice for the past 12 months, the decline in oil prices has been the financial news story of 2014 and continues to dominate headlines in 2015. Everyone is looking for a low, and the recent action has raised questions of whether or not we have found it.
The combination of the fracking boom in the U.S., an unrestrained OPEC and slowing global economies has produced a world oil glut. The result? Oil prices dropping by 57% in just the last seven months to their lowest levels since the great recession.
The story is primarily a supply one. Oil supplies in the U.S. hit a fresh record high last week at 413.06 million barrels. EIA crude stocks are 54.975 million barrels above year ago levels.