By Erik Norland, Senior Economist, CME Group
The decline in oil prices is reminiscent of episodes in 1985-86 and 2014-16 when supply increased, with an additional element of falling demand.
- Oil prices tumbled in 1985-86 and again in 2014-2016.
- Abrupt increase in oil output precipitated the declines.
- Current selloff triggered by both supply and demand shocks.
- Global oil demand has fallen due to spread of coronavirus.