The Fall In Crude Oil Prices: Headline Issues To Watch

Oil price movement through 2014 and into 2015 is a consequence of market fundamentals. Europe's continued economic woes, paired with the slowdown in China's economy, have led to a fall in demand for oil.

At the same time, the growing U.S. shale-oil boom (over which OPEC has no control) and the pick-up in drilling in Libya have led to an excess of supply. However, in the past few months the issue has switched from how quickly oil prices have fallen, to how much further they have to fall.

Price movements suggest that the relatively stable (and high) prices of the last few years have given way to a new era of volatility, where comparatively small changes in market fundamentals will lead to significant price swings.