Is $130 oil a bubble?

Some say no. They say unlike the tech and real estate bubbles, there’s no overabundance of supply. Others say these high prices are not sustainable.

NEW YORK (CNNMoney.com) — Oil prices have doubled in the past 12 months, surging nearly $8 a barrel in the past four days alone.

Big investment funds are putting money into oil futures as if Saudi Arabia’s spigots will run dry tomorrow. At the same time, the supply of oil and the demand for it hasn’t changed much in the last year.


So it raises the question: Is $130 oil nothing more than one big bubble?

The answer depends on who you ask.

“A bubble is where supply overwhelms demand,” said Stephen Leeb, an investment manager who has authored two books on oil scarcity.

CNN