Gasoline prices seem poised to set a new record, surging to within half a cent of their record high of $3.227 a gallon. Concurrently, oil prices spiked past US$108 to a new inflation-adjusted record high on wholesale inventories. Crude prices surged to yet another record on reports by the Commerce Department that wholesale sales have spiked by 2.7% in January, their biggest increase in four years. Crude oil have spiked up by 25% this month. The strong sales report suggests that the struggling economy may be doing better than thought.
The national average price of a gallon of gas rose 0.7 cent overnight to US$3.222 a gallon, 69 cents higher than one year ago. Last May, prices peaked at US$3.227 in the face of surging demand coupled with refinery outages. Currently, oil prices seem poised to touch new highs of US$3.40 a gallon this spring.