"Don't be surprised at how fast something can get high, and don't be surprised at how fast it can come right back down," Schultz said.
Still, Schultz said his firm thought the current bull market would stop at $96 a barrel. But now that oil has broken through that
barrier, Northstar sees the current spike running all the way up to $111 a barrel in what likely will be a highly volatile market.
"As you get higher, all you do is raise the volatility of these markets, where a $2 a day fluctuation is normal," he said. "What really becomes the bigger point of concern is can the economy globally continue to sustain (itself) if oil does get to $110, $111."
And consumer demand isn't likely to slow even as gasoline prices starting rising past $3 a gallon.
"Hundred-dollar oil is not going to affect consumers any more than $50 or $60 or $70 did," said Jerry Castellini, president of Castleark Management. "They're going to consume a little bit more in oil and a little bit less in other areas of retail. But look for oil to continue after maybe a pullback here to ride right into the hundreds next year."
The current run in prices gets oil near the inflation-adjusted record of $101.70, reached in 1980 when large producers Iran and Iraq went to war, creating a global energy crisis.
The IEA warned that oil could soar to an inflation-adjusted $159 in 2030 if demand runs higher than currently expected.
"We are experiencing high oil prices today, and if actions are not taken in years to come, we can see a supply crunch, which is not good news for anybody and it may end up with very high prices," IEA Chief Economist Fatih Birol told Reuters.