The Oil bubble is getting bigger, will it burst soon?

The current Oil prices seem intent on reaching new heights and with the latest announcement from the US energy secretary that the low production is the only cause behind the sudden increase in Oil prices, the ball has been knocked back onto Saudi Arabia's court.

With almost every single country reeling from high oil prices and the accompanying inflationary pressures, a conference of sorts is currently underway in Saudi Arabia, between the Oil suppliers and the Oil consuming nations. The steep hike has set ramapant inflation loose with many of the countries registering double digit inflation figures. China has already been on the brink of the 'double digit' inflation quite a while before the Oil crisis started. This was on account of its economy and with the current oil rates, the inflation is bound to shoot up like anything.

Samuel Bodman's comments prior to the conference suggests that the rest of the world has but lost their patience with Saudi Arabia as well as the rest of OPEC dragging their feet on this issue. One of the key goals of this conference would be to make Saudi Arabia see reason and not cry fowl. All the eyes are on the conference and one can but hope that the Oil bubble will burst soon rather than later, for the resultant mess would be easy to cope with.

Going up, going, Gone, Oil reaching for the 100$ !

The Oil scenario is not getting any brighter with the crude prices touching nearly 98$ and then settling at 97$. The middle east tension coupled with the Afghanistan blasts and the Yemen oil pipeline disaster is making the Oil shoot even higher.
At these current trends and with dropping crude inventories in the United states, the chances of Oil falling down seem slim, at the most one can expect the Crude prices to base the current rise at 95$.
The Pakistan tangle does not make things any brighter and the chances of a full blown war in the Middle east seem all the more likely as the bad news keeps getting worse. Lets not forget the Nukes in Pakistan. As things stand, people all over the world are jittery at the thought of these weapons falling into the wrong hands and the recent news of Militants capturing the border cities in Pakistan indicates that a showdown with the Pakistani military is imminent. Either way the tension factor in Pakistan and the middle east only seems to be going up and were that to happen, the Crude supplies would drop drastically. We all know what happens with the demand and supply song, with more demand and less supply the prices will surge up even further! It just is no longer possible to predict what will happen with the Crude prices as the entire Middle east geo politics keeps changing at the drop of the hat!