The so-called “psychological price level” of USD 100 has been breached. Yet, the reaction towards this occurrence is nowhere near what it was hyped up to be. Business continues on, as usual. No sudden panics occurred anywhere. It really does make you wonder what the big deal was to begin with.
I guess, the visible lack of panic (or even any other reaction showing worry or anxiety, for that matter) shows that people are smart enough to realize that $100 is just $1 more than $99, and that people are able to cope with the rising price better. And I guess, in terms of political and economic stability, that’s a good thing.
However, does this lack of reaction signal a slow transition from fossil fuels to alternative energy? If people are insensitive towards oil price changes, then there won’t be a substantial change in behavior. If there’s no substantial change in behavior in terms of energy use, then there won’t be a transition towards alternative energy. And that is definitely a bad thing, no?