Reason No. 2: US is awash in oil
It's not just OPEC. The U.S. oil industry also has been pushing production to "11," to borrow from Nigel Tufnel in the mockumentary "This Is Spinal Tap." Thanks to new drilling in the Gulf of Mexico and the increased use of techniques like hydraulic fracturing, or "fracking," on land, the U.S. is awash in crude.
Domestic oil production has increased every year since 2008, which has pushed U.S. crude oil stockpiles this winter to their highest levels in 80 years and has contributed to a growing world supply. Meanwhile, American refineries have been buying fewer barrels of more expensive foreign crudes.
The government expects domestic production to decline, from an estimated 9.43 million barrels a day in 2015 to a projected 8.69 million per day this year. But for now, the increased oil supply in the U.S. is helping to push oil and gasoline prices down.