Forget $100 a Barrel - Oil Will Plummet to $30

Remember all those times OPEC tried to tell us that they didn't want high oil prices and we didn't believe them?  Well, they meant it.  They knew that technology was available to crush oil demand but they hoped that the low price of oil would keep the technology buried.  The cat's now out of the bag.  The commodity run is over.  The talking heads are trying to temper the recent selloff in oil by saying that it will settle around $100 a barrel but that is not what happens when a bubble bursts.  Oil is headed back down to historical levels between $30-$50 a barrel.  Consider the following evidence:

1. Oil consumers quickly adjust to high gasoline prices.  June data from the IEA reports a 4.7% drop in miles driven by Americans year over year.  That equals a loss of 12.2 billion road miles of oil demand in just one month.  The adjustment has come without a hitch.  Staycations have replaced vacations.  Honda (HMC) Civics have replaced Chevy (GM) Tahoes.