CNN Money is reporting that oil prices shot up nearly $11 a barrel and settled Friday at a record $138.54 on geopolitical jitters, a dollar decline and a forecast that oil would hit $150 by July 4.

Friday’s spike in the July contract for light crude on the New York Mercantile Exchange marks the largest singe-day increase in oil prices on record. The contract hit an intraday record of $139.12, breaking the previous trading record of $135.09.

“The bulls are running rampant and the bears have panicked,” said oil industry analyst Stephen Schork, editor of the Schork Report. “It’s pure hysteria, absolute panic,” he added.

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It’s making money based on fear. Oldest trick in the book. Some fear may be justified, but not at these levels. The Middle East is volitale for sure, but Saudi Arabia is rock solid, as is the UAE and Kuait. There is also plenty of oil in the ground all over the world.

Once the Wall Street money folks took control over the oil futures, this upward trend of prices was inevitable. The only hope we have is that either we significantly reduce consumption, or the oil bubble bursts, much like the dot com and the housing bubbles.

Read more about the bubble here and look at a really cool chart here.

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