The conventional wisdom tells us that the price of oil is determined by the events in the Middle East. Several of the largest oil producing states are in the Middle East, therefore any turmoil in the region impacts the price of oil. However, recent developments in alternative energy sources around the world and America’s rising status as a major oil producer might very well bring a halt to rising oil prices.

The price of black gold has been rising for decades and the ever-present disorder in the Middle East has done little to bring down the prices. Interestingly the oil prices have fallen from about $92 a barrel to $84 a barrel since the beginning of October until the recent conflict between Israel and Hamas. Analysts expect that overall trend of declining oil prices continues – regardless of occasional flare-ups in Arabia.

The question is: what happens when the Middle East no longer determines the price of oil? We might actually witness barrel prices plunge under the magical 50 buck marker. Imagine, Arabs won’t stop fighting, but the West enjoys an abundance of cheap oil.