For decades, the price of oil was set by a Middle Eastern cartel called OPEC, mostly governed by Saudi Arabia. If the Saudis wanted more money, the price went up. If they wanted to apply political pressure, they either cut supply, or cranked up the price. Ronald Reagan understood this and used it to topple Communism by asking the Saudis to slash the oil price, thus tanking the Russian economy.
Today, OPEC isn’t in the driver’s seat anymore. America is. Oil prices are now being driven purely by supply and demand. Right now, because of hydraulic fracture stimulation, world oil supplies are the highest in decades, without relying on the Middle East, and prices are adjusting accordingly. Gosh, I LOVE being able to say that. Keep drilling America!