It's interesting that two of the biggest factors driving markets and economic policy right now are scientific theories, those of climate change and peak oil. For the past two years, every time I've chatted with an energy or commodities analyst, I have asked whether he or she believed in peak oil, the theory that global oil production has reached its zenith. The answers have slowly transformed from an outright "No" to "Well..." to "Certainly, investors seem to buy the theory more and more."
Yeah, $135-a-barrel oil will do that to you. I was on CNBC's Kudlow & Co. last night with oil guru Daniel Yergin, who has consistently dismissed peak oil while at the same time consistently missing the continual rise in oil prices. I didn't get a chance to ask him whether he was changing his position. (He seems to have undue faith in the Saudis' oil reserve claims.)
What do you think is causing the spike in oil prices? Please vote below: