you’re right that we are seeing a glut of oil and underinvestment due to a demand shock. However, the resultant supply constraints are beginning to be real. Rig counts are plummeting, countries and companies are cutting back on investment. A post I wrote in January on Conoco Phillips is but one example.

When the economy rebounds, it will do so with a decided upward kick to commodity prices, if that isn’t happening already.

This does not preclude the potential of peak oil. But Simmons argument is self-serving and does not represent the current market forces.