NEW YORK (CNN/Money) - My favorite recent oil trader quote: When asked "How are you looking at the market today with oil at 60 bucks?"

His speedy reply: "With astonishment."

One striking aspect of this latest leg of what feels like an unending rally in oil is that it has occurred without any major supply shock -- no strike, no pipeline blown up, no coup toppling a leader, etc. The main factor -- excuse? -- driving crude oil higher is the fact that demand remains strong in spite of ever higher prices.

That's one reason why traders are somewhat skeptical of oil's recent climb above $50 per barrel and $60 a barrel and ... now who knows where? Yes there is long-term supply issue, they say, but right now some say they believe there's a big element of speculation in the market -- players chasing prices higher to make a quick buck and then chasing it higher again, in order to make another quick buck.

Are we in a brave new world of $50 to $60 a barrel oil?

The bulls say yes, and that will simply be the floor from which prices spike higher. Could prices fall back to $35 a barrel? Even the bulls admit that if expensive oil causes a recession, a fall back below $40 a barrel is possible.

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-- Kathleen Hays is economics correspondent for CNN and contributes to Lou Dobbs Tonight. You can read more of her columns here.