You may have heard this little nugget of wisdom referring to market behaviour as prices fall.
"Even a dead cat will bounce if it falls far enough".
It works the same way in reverse. Take a peek at oil's roller-coaster ride over the past decade. link Expect price volatility like never before seen... if Peak Oil is a credible concept.
It's just Adam Smith's cold, dead hand enforcing supply & demand economic behaviour. The recent meteoric fall in oil's price should be at least as disturbing as it's assent... it heralds the violent correction to come.
These swings will devastate hydrocarbon alternative industries globally. With no firm economic base to ensure profitability, these fledgling oil alternative businesses will struggle for financing, and ultimately be delayed by years... perhaps decades. Imagine the downstream impact this interruption will have on our collective future.
"Drill baby drill" should contribute nicely to wild oscillations in price.
Can you say "demand destruction"?
I knew you could.
How about "poverty"?
Yeah... thought so.