[quote=flinger][quote=stockstradr]Oil wasn’t and isn’t in a bubble.

Rich was and remains correct.

Oil has simply been hit with extreme demand destruction, deflationary pressures due to global economy recession / depression.[/quote]

Exactly. It’s not like oil went to $147, “crashed” to $80 (a number considered obscenely high just 18 months ago), and everyone lived happily ever after driving their SUV’s 50 miles to and from their overvalued McMansions.

Oil went too high and the global economy entered a state of severe malfunction. I’ve often taken issue with some of my fellow Peak Oilsters who believe that it is to the moon with the price of oil. The spot price of WTI is just a silly little (almost insignificant) number. At some price point, the economy breaks. Voluntarily or not, the citizens of the world accept an adjustment to their standard of living, oil recovers, rinse and repeat.[/quote]

I agree we hit a ceiling. I’d venture to guess even a healthy, and we are far from, globalized economy would start breaking down around $250 or so. The food riots that popped up all over the world a few months back are a good example of the kind of chaos high oil prices can bring.

After following the converging crises of peak oil and the credit bubble over the past few years. It looks like the implosion of our economy took care of high oil prices. I just find it interesting that the American consumer the main culprit in sucking up all the oil got shot dead in it’s tracks just has peak took hold. TPTB hit reset.