Oil Prices To Keep Climbing

The unprecedented rise in oil prices from 100 dollars to almost 150 dollars a barrel over the past six months has stoked speculation over the possibility of oil hitting 200 dollars in the near future. Call options for oil at 200 dollars a barrel doubled in trading over the past month and more companies are buying long term contracts locking them into high oil prices, an indication that the market anticipates further oil price increases. Such an outcome would devastate the world economy, especially the automobile and airline industries, and would cripple American consumers.

Snapshot asks, how much of this unparalleled increase in prices is due to speculative fever as opposed to market forces?

Businessweek - What If GM Did Go Bankrupt...
Market Watch - Allianz predicts oil price of $200 barrel in next 2 years
Financial Times - Bets double on oil hitting $200
Wall Street Journal - Oil's Rapid Rise Stirs Talk of $200 a Barrel This Year