Oil futures market sort of gets it.

An article [$] in the WSJ about the oil futures market, pointing out that because oil futures are pricing oil much higher than they used to, oil may stay high for a while to come.

The funny part is that while oil near term is in 50's, further out it's trading in the 40's.

The even funnier part is that analysts are expecting oil further out to drop into the 30's.

In the past 3 years oil analysts have been too low on oil prices by 22% on average.

Here's a quote from the redcoat:

"I used to think, forget it, $40 oil is not sustainable," says Oppenheimer & Co. energy analyst Fadel Gheit, a 30-year industry veteran. "It has to come down from there. That's what I was taught. But things have changed. The center line for oil prices is clearly moving up."

P.S. I never see any mention of peak oil or future falling global production in these stories. December 2010 oil future in the 40's? I should look into how to buy a few of those.