What goes up must come down

Falling demand for oil is not just an immediate reaction to the current financial crisis but a response to the structural impact of five years of very high oil prices, says Dr Pierre Noël, an expert in energy economics and policy with the Electricity Policy Research Group, who notes that oil prices will rise again due to the cyclical nature of the business. However, Dr Noël believes that OPEC exacerbates these ups and downs by overshooting in both directions and considers the long-term implications as the OPEC cartel gathers strength.