Crude oil gains $11 in two days, set to hit $150 by July

Crude prices have went up by $11 in the last two days. Meanwhile, Morgan Stanley has predicted that oil prices can reach as high as $150 by July 4.

Oil prices are creating new records with every passing day. The price of oil at New York mercantile exchange has gone up by $11 dollars since Thursday morning. Crude prices have increased by more than 50% since the beginning of 2008. The major reason for the sudden surge has been attributed to a weakening US dollar, increase in demand from Asia, threat of an attack on Iran. US dollar has weakened further against the Euro. Meanwhile, Israel's transportation minister Shaul Mofaz has threatened to launch an attack on Iran if It continues with It's nuclear programme.

If Iran continues with its program for developing nuclear weapons, we will attack it. The sanctions are ineffective. Attacking Iran, in order to stop its nuclear plans, will be unavoidable.

Iran is the fourth largest producer of crude oil. Morgan Stanley, a major investment bank has predicted that oil will continue It's rally and can touch $150. Last month, Goldman Sachs said $200 a barrel was possible within the next two years. Gasoline prices are averaging $4 across the US and expected to cross $5 by the end of the year if the rising trend continues.