Oil prices continue to flirt with the $62/barrel mark, and particularly worrisome is the fact that gasoline supplies remain about 3% below year-ago levels. This is due to strong demand and the fact that refineries are not very resistant to fire and hurricanes. In fact, about 10% of gasoline refinery capacity in the US is now encountering some sort of problem, and when added to reports of a growing economy, it has many concerned about the ability for supply to meet demand. As people insist on pointing out, oil would have to reach $90/barrel to meet the adjusted peak cost of crude in 1980, but repeated mention of this would seem to be taunting fate. One thing is for certain; with premium running about $2.69/gal around here, I'm glad to be cruising around with two overdrive ratios in my transmission.

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