Why are oil prices falling? 5 reasons you might not expect

Here are the five main reasons why oil prices have hit their lowest levels in years.

2. Saudi Arabia isn't budging

Saudi Press Agency/AP
Saudi Arabia's Crown Prince Salman bin Abdulaziz Al Saud, center, talks with Afghanistan's President Ashraf Ghani Ahmadzai in Riyadh, Saudi Arabia, Sunday, Oct. 26, 2014

As a leading producer, pumping nearly 10 million barrels of oil a day, Saudi Arabia has outsize influence in the oil markets. And so far, the crude powerhouse has indicated it’s willing to ride out lower prices so as to avoid losing customers to US producers or other competitors. It’s a strategy of  maintaining market share until the price of oil rises again.

Other less stable members of the Organization of Petroleum Exporting Countries (OPEC) reject Saudi Arabia’s strategy. Venezuela, for example, would rather cut production than take a reduced price for its oil.

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