I find the prospect of $262 a barrel oil somewhat ludicrous in any case. Even if the world production were cut to 1/4, the price would not rise 4x. It might spike that high, but the collapse of economies around the world would cut demand so the price would rise to maybe 2x, that is, $130. That is as far as it would go longterm since the alternatives would be brought online as quickly as possible, 5-7 years, and the price of oil would then be held to $130 by lack of demand for expensive oil. Also, the possibility of general war would kick in at that point and there would be next to zero civilian oil demand. All oil aside from necessary civilian use would go to the military.
Agreed in principle, although where the equilibrium point based on demand destruction might be I would not venture a guess. Too bad this thread got revved up initially based on the comments of that goof ball Soros.