the retreat of the oil prices

It's not retreating yet, but it will. Sooner or later.

CNBC's Keneth Stier thinks it may be sooner. He thinks oil prices may be nearing a peak.

I'm not sure if were near that peak, but I'm sure that the price cannot be sustained at these levels. People will adjust and adapt. Habits will change and the world's love affair with oil will fall from its current glory.

Here's a few reasons why i'm of that opinion.


Changing perception
On CNN, I saw a program citing interviews implying that Americans are starting to dislike their large cars and are acceding to a general opinion that oil will go up, not down in the long run. Keneth Stier notes that the road loving Americans have reportedly been driving fewer miles.

Adaptation
In Europe, a club called Street Car was invented. It is like a carpool on a grand scale. A very complex car-sharing system that is somewhere in between public and private transport.

Reality
It won't take an analyst to call this oil's bull market a bubble. Speculation is what's driving the price now. When the slowing demand starts to manifest itself more clearly through statistics and the world's supply catches up, the easy to spook speculators will pull their money out of oil and dump their hoards.

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