Persistently low oil prices have had a devastating effect on the economies of all major oil producers/exporters who are accustomed to a price regime of over $100/b. The lifting of sanctions on Iran and its ability to quickly ramp up to pre-sanction (2012) levels of production and exports has made the market even more liquid and exerted downward pressure on oil prices.
Economic survival and grabbing market share – self destructive
Suddenly when oil prices collapsed, the major oil producers and exporters found themselves in a challenging situation, as falling oil revenues were not sufficient to balance government budgets.
