The oil price picture gets dicer every day. It climbed to a record $138 a barrel on Friday in the New York Mercantile Exchange as the dollar fell sharply against the Euro and tensions in the Middle East mounted.
In the last year prices have doubled, and in 2008 oil prices so far have risen by over 40%,
My take on skyrocketing prices of oil has to do with rising energy demand of high growth Asian economies such as China and India where oil prices are heavily subsidized, a weak dollar, and rising tensions in the Middle East. I do not think it is another bubble.