Its simple really.
OPEC is dumping oil on the market to destroy newly created oil sources in North America. The Tar sands in Canada cannot work when oil falls below $50 a barrel, the production costs are too high.So if OPEC can keep dumping for 2 years, many new North American oil sources will be forced to close, and pipeline construction will be abandoned.
Secondly the Obama administration is gleefully celebrating the OPEC support it is getting, because it spells the end of pipeline controversy and the end of many new oil exploration oil finds. THe economy will boom in the USA for two years
, supporting the meme that Obama fixed the economy ( a lie).
Thirdly, OPEC is removing Russians ability to make war and annex territory where Muslims live unmolested now in the Baltic States and in places like Moldovia, by making the Rubkle go distinctly south.
So US consumers can make hay now for 2 years, and will joyously vote democrat in 2016. WOW ! And then the price of oil will rocket back up to $120 in a week, in December of 2016.
BUY ALL THE OIL STOCK YOU CAN WHILE ITS CHEAP.
Unfortunately, my oil and pipeline stocks are in the crapper...
OPEC has not raised their production, the US, and Canada are the only ones putting any significant additional oil on the market.
I wonder how much of this is also due to demand destruction over time, due to high prices and the moribund economy.