Oil producing countries that depend so much on oil revenue might eventually raise their voice at OPEC to curb output.

After the recent drop in the oil price all the way from the 2014 high of $107 to $43 in January 2015. Prices rallied back to $61 sometime in March. The major reason for the drop in oil price can be attributed to supply glut caused basically by shale production mainly in the United States of America. The United States is the largest consumer of oil in the world, consuming 20.5 million barrels per day. They are also the biggest producer, producing 12.4 million barrels per day.

The oil market has been flooded with an excess supply of oil from OPEC members and non-members. This explains the fundamental basics behind the oil price plunge. The US shale is the major shale oil producer which has flooded the market. This can be attributed to advancement and innovation in science and technology.

The shale production coupled with supply from Russia and other OPEC countries has led to current problem of excess supply. From the demand side, innovation has actually led to a fall in demand for oil. Cars for example are now powered using synergy. Also, electricity is now powered using solar and wind energy. The world is trying to go green which means less fuel burning (coal) and a switch to clean energy. All these have actually stalled the consumption of crude oil globally.