The Oil Bubble Trouble Bubble

Peak oil guy Matt Simmons — despite sounding particularly apocalyptic — makes a good point, and echoes one I made here earlier: At what point does a decline in oil price become a bigger issue than an oil price advance? So long as people think oil is set to collapse, investments that would be made, if we knew there was a price floor in place, will not be made.

I like to think of this as the oil bubble trouble bubble. It’s the cancerous growth in the number of people thinking there is an oil bubble that’s in trouble.

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