Mid-East Crisis Could Push Oil to $125

BBC News – Israel’s bombing of Lebanon has yet again prompted speculation that oil prices will soon soar above $100 a barrel.

But reality could prove even harsher, according to Deutsche Bank chief energy economist Adam Sieminski.

“Market commentators still seem to view the prospect of $100-a-barrel oil as shocking,” he says in a research note.

“The options market is reflecting a more blase attitude to this risk; $125 oil is the new target for bullish trades.”
BBC News