Oil speculation in the futures markets has gone out of control. Even information that would normally be bearish for oil is causing oil to rise. It's strange that pricing for such an important commodity is completely out of control of the suppliers of that commodity.
Some are predicting that an oil bubble is forming since we left supply/demand behind a long time ago, but who knows how long it'll take to pop it, if ever? Most economists feel that the last $10/barrel increase was purely due to speculators who will never take delivery of a single barrel of oil. From what I read, oil is probably overpriced by around $20/barrel.
Oil today hit another high near $67/barrel for US light sweet crude based on the fear of hurricanes in the Gulf of Mexico and of Iran's restarting of their nuclear reactor. Since there is a several weeks lag between oil futures prices and gasoline at the pump, gas will get a lot more expensive than it is now.
