The oil price surge is just like the dot-com boom, analysts at Lehman Brothers tell the Wall Street Journal, and costs will sharply decline once the US dollar strengthens and demand dips in certain countries. Lehman claims oil is experiencing the "classic ingredients of an asset bubble," and points to the "herd" instinct of financial investors in rising prices.
Many in Washington blame speculators for driving the price of oil exorbitantly high. Another contributing factor is the tailing-off of production in some of the world's biggest exporters, particularly Mexico, Russia, and Venezuela. Oil has fallen back after peaking at more than $133 almost two weeks ago.