Warren Buffett has recently been investing billions in shares of oil & gas companies such as Occidental Petroleum (NYSE: OXY) and Chevron (NYSE: CVX). I’ve also seen articles and podcasts from oil & gas investors talking about the current supply-and-demand dynamics in the oil market that could lead to sustained high prices for the energy commodity, (the price of WTI Crude is currently around US$93 per barrel). These piqued my interest and led me to research the history of oil prices and what influences it. What I found was surprising. First, here’s a brief history on major crashes in the price of oil (WTI Crude) over the past four decades:

• 1980 – 1986: From around US$30 to US$10
• 1990 – 1994: From around US$40 to less than US$14
• 2008 – 2009: From around US$140 to around US$40
• 2014 – 2016: From around US$110 to less than US$33
• 2020: From around US$60 to -US$37

As a commodity, it’s logical to think that differences in the level of oil’s supply-and-demand would heavily affect its price movement...