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Politics : Politics of Energy
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To: zzpat who wrote (79574)12/8/2017 11:58:03 AM
From: Brumar89  Read Replies (1) of 86350
 
You could just say high prices lead over-production and to declines in demand both of which lead to price crashes. Price crashes lead to production crashes which lead to production cuts and to economic recovery. Economic recovery starts the cycle all over again. It's the way commodity price cycles work.

Point of fact: Oil prices began falling BEFORE the end of Iranian sanctions. Another point of fact: Since sanctions ended in January 2016, oil prices have actually increased some:

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