By Ryan McGreal
Published November 02, 2007
According to Bloomberg, oil traders are now betting that oil futures will hit $125 per barrel in December.
This comes just after oil futures reached $96.24 per barrel yesterday before falling back to $94.08.
Of course, some of the rising price of oil actually reflects the falling US dollar (the loonie just hit $1.06 US), since oil is priced in dollars.
However, even adjusted for the weak dollar, oil prices are still climbing steadily, in response to a seemingly impassible 84 million barrel/day limit on the rate of production, aggravated by political tension in the Middle East.