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The oil "bubble" will "burst" when either one of two things happen:
May 24 13:24 pm
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All Comments by John Lounsbury »The Power Failure on Wall Street [View article]
1. There is a world-wide economic slowdown; or
2. One or more alternative energy sources increase output to start taking pressure off of demand for oil.
This is a classic bubble resulting from inelastic supply upper limits; the only elasticity is in demand. So far in this cycle demand has not shown much elasticity. The desirable source of elasticity is from item 2. (above). Unfortunately, because of short-sighted planning (and lack of planning), both political (public) and economic (private enterprise), the most likely elasticity relief will be item 1.