[JasonC]

It isn't a fallacy.

Grand strategy by hostile powers foreign and domestic, also, to be sure. But there is no fundamental reason for this price level for oil. We could drop it by half tomorrow if we were halfway sane about anything.

[668 - Neighbor of the Beast]

It’s a fallacy. He is connecting the price of untapped oil with that of “its current price.” (”Considering how much untapped oil is known to exist...one would think that its current price was some kind of anomaly and it is.”)

Moreover, he refers to “untapped oil” and “its current price,” when in fact he is NOT talking about the current price of untapped oil.

[mysterio]

But there is no fundamental reason for this price level for oil.

Sure there is. It's an essential monopoly good with inelastic demand. We are at peak oil. Daily production is 81.7 million barrels per day. Daily demand is 86.95 million barrels a day.

Gas is expensive because the whole world wants oil and there isn't enough being produced to satisfy demand.