I've heard a number of people warn us that oil prices could double, or triple, in the event of a new disturbance (e.g., Iran) in the Middle East. I think that this is ludicrous. So does Larry Kudlow. He explains.

And if oil prices don't fall, I doubt Democrats will gleefully, or Republicans will have the guts to, launch a Congressional investigation into why, with such an inflated supply, oil prices remain high.

Whenever I encounter somebody (e.g. peak oilers) who's rambling about how the price of oil is about to skyrocket, I often ask if they've put their money where their mouth is and have purchased oil futures. After all, if the prices do skyrocket, they could make quite a bit of money. I don't think I've ever had a single taker.

Oil is the bench mark fuel other energy commodities compete against. When oil goes down, other fuels like natural gas and coal tend to go with them. There is some independence in their core markets but a drop in oil should lower all energy products to some extent.

I agree with Neil H. The same peak oilers never buy oil stocks.