Over $109. oil may be just the start

It's getting harder and more expensive to find new Oil deposits, and global demand is
growing. But there's so much speculation in crude Oil that a bubble may be forming.
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Crude oil hit over $100 a barrel for the first time Wednesday,
and the odds are that it will keep
climbing -- with major consequences.

If crude stays above $100 a barrel for an extended period, "you could see gasoline prices at $3.60 or $4 a gallon,
which is absolutely frightening," Paul Ashworth, senior U.S. economist at
Capital Economics, a London research firm, told The Wall Street Journal on Wednesday. "It's going to have a fairly devastating impact."

And that's on top of a lot of pain already. At the end of 2007, estimates
analyst Peter Beutel of Cameron Hanover, American consumers and businesses
were paying $370 million more for gasoline each day than they had been a year earlier.

The fact is that no one knows how much higher Oil will go.
But the forces behind the increase are the ones that pushed oil up 57% in the last year:
The run-up is likely to ripple through the U.S. and other economies.


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