Oil producers enter supercycle's dark side

Just as oil prices had to overshoot in 2008 to overcome the natural inertia in the system and force big increases in supply and reductions in demand, prices will now probably need to over-correct on the downside - AFP Photo.

LONDON: Oil producers are getting another brutal reminder that theirs is a business characterised by long, deep price cycles.

Benchmark Brent futures have dropped below US$90 a barrel, the lowest level since December 2010, but that actually understates the extent of the damage.