Originally Posted by TelBoy

Haven't you just answered that yourself by citing speculation? That's the primary cause right now. Some very influential individuals in the oil industry have predicted oil to reach $200 per barrel at some point this year, and it can become a self-fulfilling prophecy, people jumping on the bandwagon afraid of missing out. Fundamentals suggest that the fair price of a barrel of oil is about $75 per barrel, but like all things, including pictures of fat women from job centres, if somebody is prepared to pay way above the odds, that's what the price is. For the time being at least.