Like mispronouncing the word indemnity and premature ejaculations, so too is the 'oil bubble' a self fulfilling prophecy when too much trouble is put into pointing it out.
While speculators and growing participation it the futures market are undoubtedly going to raise the cost per barrel, here Krugman does well to point out that the market function of price has seen significant increases to stem vastly increasing demand--not the nasty guys at OPEC or those 10 stock traders standing around the water cooler devising a plan to make us all pay more at the pump out of sheer amusement.
Here's a newsflash: OIL IS A SCARCE RESOURCE!
And its much more scarce and harder to find and extract then we (don't really) care to know. So, go buy a Prius or a new Schwinn.
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