There have been a number of long-and short-term drivers behind the recent plunge in oil prices: several years of large upward surprises in oil supply; some downward surprises in demand; unwinding of some geopolitical risks that had threatened production; change in OPEC policy objectives; and appreciation of U.S. dollar. Supply related factors have clearly played a dominant role, with the new OPEC strategy aimed at market share triggering a further sharp decline since November.