Gas futures soar; expect higher prices at the pump

Oil and gas futures topped $55 a barrel yesterday before settling down on fears of declining production and soaring demand:

Oil's latest jump came on top of two weeks of increases, which have already reached the pump. Los Angeles motorists have seen the average price of regular self-serve gasoline climb 4 cents in the last week to $2.236 a gallon, AAA reported. Analysts warn that more increases are on the way, courtesy of the oil markets.

"We don't know how high it will go, but we don't see any way it will go down," said Carol Thorp, a spokeswoman for the Automobile Club of Southern California. "There doesn't seem to be any good news on the horizon."

U.S. light crude for April delivery zoomed to $55.20 a barrel before fading late in the day to settle at $53.57 a barrel, up 52 cents, on the New York Mercantile Exchange. Thursday's trading high was just below the intraday trading record of $55.67 set Oct. 25. The record closing price for the U.S. benchmark grade of oil, reached twice in October, is $55.17 a barrel.

Of course, once these prices are reflected at the pump, you can bet that some politicial (Barbara Boxer perchance?) will be shocked and levy complaints against the oil companies, charging that they are gouging consumers.