This was our causal loop.

Fig-1 Our situation
Oscillation is simply an up and down of something, occurring in repeat with time. Now let's see why it causing an oscillation.

Fig 2. Analogy with toilet siphon. C = Cause. E = Effect. E(min)= minimum value of effect . E(max)= maximum value of effect (as much allowed by time delay).
I've compared here this process with a toilet siphon.
Here I've considered the constantly adding up water from tap; is cause. As in your case, Enzyme-E is always present at the left side.
In my case (siphon), the water-level is the effect (In your case it is phosphorylated enzyme (EP), that may present at right side, or may not, if inhibition is high.)
Step-1: starting point: cause is applied
Step-2 : Since inhibition take-place a while latter, your EP adds up (my water level goes up). The dotted inhibition sign on fig2 indicates it yet not reached to the target.
Step-3: When a certain time passed, no-more EP accumulates in your system-of interest. Because inhibition starts. In my case, siphon-effect starts, and water level decrease.
Step 4: Ongoing inhibition decrease the result (in your given-case it is phosphorylation product EP, in my case water siphon it is water level. The siphon start pump out some water.)
Step 5: At next stage, your product EP become so low-concentration, that feedback became feeble, and once stops. In my case, the water level come down below siphon input. so siphon-effect stops.
And Step 6 (Similar to step-1)the process repeats once again.
See also:
what will happen if the output from a not gate injected back to its own input
Ring Oscillator
Any Feedbacks are welcome.