Why did the market price for oil in the United States drastically drop in 2014?

The market price for oil drastically dropped in the United States in 2014 due to a combination of high supply and lower demand. Increased energy efficiency and lower economic growth have decreased the demand for oil around the world, especially in North America.

The domestic energy boom over the past several years has lowered the amount of oil that the United States needs to import from foreign nations, leading to a glut of extra oil on the international markets. The OPEC nations, led by Saudi Arabia, have refused to lower their oil output in order to preserve their market share, which has only further depressed prices.