Why Oil Prices Are Falling?

The oil prices are falling in the international market with the oil prices on August 10,closing at $49.45 per barrel of oil .But why?

This slump in the oil prices can be understood using rather jejune rules of supply and demand economics.The changes in the supply and demand for any quantity changes the price of the commodity will also change and oil is no exception.So in the present scenario where the supply is going up and the demand is plummeting the prices were meant to go down according to the supply-demand curve.

Now the question arises as to why is there a sudden supply glut and fall in demand of oil?

Enumerated below are the main reasons that have led to this recent over supply and reduced demand for crude-

1)Increased shale oil supply from the US.

2)Unwillingness on the part of OPEC(Organization of the Petroleum Exporting Countries),the oil producing cartel of the gulf countries, to cut own production.

3)Slowdown in the economy of China,which is one of the biggest consumer of oil.This has led to the  demand for oil plummeting in China.

4)Iran Nuclear Deal effect-After Iran signed the historical nuclear deal the trade sanctions on Iran have been lifted.Thus Iran can export more of it's oil to the world.This will lead to increased availability of oil.

5)Paradigm shift in the energy procurement methods adopted by many countries, all over the world, with increased focus on clean energy.

Because of the above stated factors the oil prices are going down and are not going to recover anytime soon.