That worry (or hope, depending on your point of view) that oil might soon drop to $10 a barrel? It might be here – or maybe not. It all depends on who you ask.
Part of the problem is speculation: individual and institutional investors betting on higher future oil prices. Another big factor is the very weak U.S. dollar. But the bulk of the reason oil and gas prices have climbed so high is that age-old Economics 101 supply/demand equation. Global demand, especially by developing countries, continues to grow, while supply does not.