Oil has been collapsing, down roughly 40% from this year’s high. The issue is a lack of enough demand growth to offset the increased production from the U.S. Since 2010, the U.S. has increased production of oil from 5 million barrels a day to about 9 million barrels a day currently. The large increase in U.S. oil production has created an oversupply condition of around 2 million barrels per day. Typically, OPEC would react to supply imbalances and cut back. However, that was not the result during last week’s OPEC meeting.

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PVG Market in a Minute – December 2, 2014