Gas Prices Nearing All-Time High

The numbers in the article reflect averages and certainly don't represent what we're paying in California:

Gas prices have jumped nearly 20 cents over the past two weeks, approaching the all-time high, according to a survey published Sunday.

The average price of a gallon of self-serve regular is $3.76, the Lundberg Survey found. The previous survey three weeks ago found an average of $3.57.

That means prices are now just 35 cents -- "within firing range" -- of the all-time high of $4.11 set in July 2008, said publisher Trilby Lundberg.

"This doesn't mean that we will get there," she said. "Crude oil will decide."

Crude prices have been impacted by the unrest in the Middle East, she said, but also by two other major underlying factors: increased demand in developing nations and the weak dollar.

"Unless crude oil relents and slips, we can expect a further rise at the pump because pump prices do not reflect all of the crude oil price hikes that have occurred," Lundberg said.

This past weekend I paid from $4.01 in Westley, CA (and $4.03 when I passed through there 2 days later) to $4.23 in Rohnert Park. There's no downward pressure on prices because Obama hasn't done anything that would indicate he cares where gas prices go. After all, he doesn't have to buy his own gas, and during the campaign didn't complain about the high price of gas but only about the rate of increase. He'd love to see $5 a gallon because he thinks that will somehow unleash all kinds of innovation in unicorn and moonbeam power. However, an economy that's just starting to recover will quickly collapse again under the pressure of increased energy costs.

Chances are as we hit record high prices economic activity will slow down and demand for oil will be reduced...unless Obama decides to attack another country in which we have no vital national interest, in which $5 gas may start looking good.