Oil production from existing wells goes down all the time. It takes new investment in drilling, exploration and well enhancement to raise production. The big oil companies are not making those investments because they are afraid of another drop like 1998. Ironically, this means that oil prices will come down when experts change their tune. Every expert I read says that oil is going to fall.
Oil executives fear that another overshoot on the downside is possible.
When you hear experts start saying that oil prices are going to remain high, then the oil companies will make the investment in new supplies, and the oil will come down. Meanwhile, high oil prices are taking a bite out of economic growth. The reason was an announcement from the company that September sales are less than expected. Kodak's CFO said the weakness was everywhere, across the board, in all regions and all products. The stock market took that to mean there is something wrong at Kodak.