Why bugs? I remember during the first gulf war when gas shot up to *gulp* 1.50 a gallon! Holy guano droppings batman that was alot. After the war people realized there was no shortage and the price promptly dropped.
I suspect that a fairly large percentage of the price increases in the last few years are not do to general consumption increases, but of hoarding. Yes, we are using more oil. Yes, we are fairly close to production capacity(worldwide). When we drop just a bit below that capacity though there will be a surplus of oil available and prices will fall back. The same thing that makes oil a global commodity on the upside makes it a global commodity on the downside. All it takes is some slack from us, some slack from the Chinese, some slack from Europe. A recession would probably provide that slack.
