Implications of Sustained Low Oil Prices

Countries and companies of all sizes continue to adjust to the new economic and market realities following the oil price collapse of 2014. And while the growth in U.S. unconventional production appears to be slowly abating, the upsurge in Organization of the Petroleum Exporting Countries (OPEC) output, robust global stock levels, and ongoing uncertainty around the strength of demand suggest that the oversupply and surpluses are likely to continue well into next year, exerting continued downward pressure on prices.

Frank A. Verrastro
Senior Adviser (Non-resident), Energy Security and Climate Change Program