JRP3 said:
Actually it probably will. A change in even 1% of world production can easily influence pricing. Increased production in a stable country such as the US will likely stabilize pricing to some degree.
As can a change of 1% in world consumption.
The reason for this is well known, both the pumping oil and the burning of oil isn't very price sensitive in the short term. To pump more oil requires drilling more holes which takes time. So even doubling of the price will only slowly increase pumping of oil. Usage of oil is also can't change very fast. If you drive a BelchFire8 getting 10 miles to the gallon, price doubles and you still have to get to work. Sure, a few will carpool, and a few will park the car and walk or ride the bike or take the bus. And some trips might be not taken, such as the weekend trip to the beach. But most will not change much, and many can not change much in the short term.
Longer term of course, maybe you can buy a more fuel efficient car or move closer to work.
Political stability will lead to price stability only if much of the supply is from stable countries or if there is so much supply that the loss of a source doesn't matter. If 10% of world supply comes from unstable countries a 10% reduction in oil supply will lead to a large price increase.
To predict oil prices spikes requires predicting the politics and potential wars in the Middle East, West Africa and former Soviet Union. Yes, maybe nothing will happen. I'd suggest not betting the house.
Right now, Iran's exports are down by roughly 50% due to the embargo. I'd expect a large negative price spike, maybe down to $35 per barrel, if the embargo ends. A short war or revolution in any of the less stable large oil producing countries might double the price of oil.
I wouldn't expect that the price of oil will fall much below $70 for very long, as a significant fraction of supply comes from deep offshore, as that is about what it costs to drill and pump a barrel from deep offshore fields.