Reply #13: The drop is a result of major investment banks withdrawal from oil.

[ozymandius]

Big banks are primarily to blame for the huge price peaks that we saw one year to six months ago. Funny that back then - turmoil in the middle east and Africa brought high prices (as the news reports said). That was true to a small degree. What was never widely reported was the big banks gaming the oil and gasoline future markets. Now, really, turmoil has investment banks nervous about a sustained supply of oil. 'Markets hate uncertainty' as the saying goes. So big players have gone looking elsewhere for a reasonable return on futures.