The decision will have long-standing consequences for OPEC and oil markets.

The past two years have not been easy for OPEC; the low oil prices that hit the markets in June 2014 have had a disastrous impact on its members' budgets, and created difficulties for the oil industry in general. The current crisis is not a mere reflection of supply and demand volatility, but of a structural shift that came with the U.S shale revolution. The rise of American non-conventional oil production caught the world by surprise, and quickly transformed OPEC-dominated oil markets.

Not your father's oil glut

The process is comparable only to the North Sea discoveries that caused a similar oil glut in the 1980s. However, both the circumstances and OPEC's reaction are slightly different this time. Unlike 30 years ago, and probably having the 1980's experience in mind, OPEC and Saudi Arabia decided not to reduce production, but instead sought to focus on preserving their market share.