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1986 Oil Glut

QUESTION:  When will oil prices recover to previous highs above $100/barrel?  

ANSWER:  Someday.

Will proposed expansionist policies of the Trump administration raise the price of oil?  Maybe.  On the other hand, his likely favorable policy toward oil exploration and production could cause the price of oil to fall further.

In 1986 when oil prices collapsed due to a global oversupply, they remained low through the expansionist policies of the Reagan/Bush administrations.  Oil prices didn’t rise substantially until Iraq invaded Kuwait.

Few things are certain, but you can always count on a war in the Middle East to boost oil prices.

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