Just as supply has peaked, demand for oil has been slowing – and economists are divided on the overall impact
It is textbook economics: falling demand and rising supply. The US has ramped up domestic oil production by investing in fracking projects. US oil production increased by around 48% between 2008-13, taking output to 11m barrels a day by early 2014. At first, the US surge in output was offset by supply disruptions elsewhere: western sanctions on Iran, turmoil in Iraq and Libya. But some supply problems have abated.