In his weekly commentary, SMU Adjunct Faculty Larry Haverkamp explained why oil prices continue to plunge despite the world’s oil shortage. He said that “we are taking oil out of the ground even faster than we are using it”, and that despite the organisation of petroleum-exporting countries OPEC’s formal agreement to keep oil prices high by restricting production, most of the countries continue to undercut each other by going back on their word behind each other’s back. Saudi Arabia alone is willing to cut back on their production, to make up for the gratuitous production of those who did not. The Saudis believe that high-cost producers will go broke in the long run, reducing supplies and boosting prices. But as long as this has yet to happen, we will continue to enjoy the low prices.