U.S. oil reserves, according to the last week statistics, have reached their highest level since 1930. In addition, the United States lifted an almost 40-year ban on oil export on Friday.
Oil prices began to plummet in early December. Experts attribute this to the price war between the United States and the OPEC countries - primarily Saudi Arabia.
At its last meeting, the cartel even refused to speak of the limitations on oil production. According to experts, the cartel is currently producing 31-21 million barrels per day. Saudi Arabia is trying to increase its market share and force out the U.S. companies which have recently stepped up oil production due to the "shale revolution."
In addition, the supply of oil is expected to increase in the coming months because of Iran which is about to return to the market after the lifting of sanctions. Some experts say Iran is likely to start exporting oil as soon as the first quarter of 2016.
At the same time, the demand for oil in the world is still weak due to the slowdown of the Chinese economy and the reduction in developing countries' demand.