During the mentioned period, prices rebounded three times when they crossed the $48 breakeven price.
Figures released by the International Energy Agency (IEA) indicate that crude oil oversupply has been the major cause of the price slump since June 2014.
Now that some OPEC members like Saudi Arabia export unprecedented crude oil amounts to more than 1.5 more than the market need, disregarding OPEC's agreed 30mb/d ceiling, the prices keep maintaining at the $48 level and even if they fall any lower, the fall may not be much lasting. This means that costly oil output by American frackers and other unconventional producers have to stay out of the market when prices go any lower than 50 dollars and once prices cross the breakeven level ($48), they flood the market, add to the oil supply glut, lower the prices, become uneconomical and again have to stay out of the market.
On the other hand, Iranian Petroleum Minister Bijan Zangeneh has laid much emphasis on the country's return to the market once western sanctions are removed on Tehran for its nuclear program.
This would bring oil market oversupply to over 3.5 million barrels a day.
If OPEC members fail to consider their export ceiling of 30mb/d, the price of both unconventional and conventional oil supplies will drop dramatically, putting unprecedented pressure on major suppliers whose economies are deeply dependent on petrodollars.
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