I think ordinary folk should find it scary that the price of oil is a complete sham.

Price of a barrel of oil has fallen 50% in the space of two to three months based on the policy decisions of OPEC. Has demand suddenly collapsed? I don't think so, anything you can bring onto the market, China will gobble up.

Of course, the price at the pump comprises a lot of taxes too, but it seems evident that ordinary folk are getting ripped off and that the price of oil is not only lining the pockets of the Saudis but also a geopolitical tool.

They will be fine. Russia isn't a bankrupt by a long shot, but it hurts them. It hurts businesses more, kinda what's the point of the sanctions. I think Putin will be gone and leader will come around. But Crimea isn't coming back to Ukraine - this part would actually cause a revolt in Russia.

Russian folks are full of patriotic ideas right now what I hear from family & friends. But obviously what people in the West don't hear that Ukraine is even in a bigger hole than Russia. Western countries should help out now.

Well, there are similarities. Russia had collapsed the last time the prices on oil were released [1] during a slowdown of economy. And it was pretty scary, considered to be one of the times at which the world had come closest to a world nuclear war [2].

[1] http://en.wikipedia.org/wiki/1980s_oil_glut [2] http://en.wikipedia.org/wiki/Able_Archer_83

I imagine the recent reduction in oil prices is having a huge impact. As to why oil has gotten so cheap.. I guess that is anyone's guess.

A better question would be "why has it stayed high for so long"? Oil supply has been higher than demand since the recession of 2007.