Oil prices have continued their recent surge following this week’s inventory report from the Energy Department. Oil has jumped $2.65 to $111.15, and are very close to hitting its historic all time high of $111.80. Prices moved up as high as $111.43 immediately following today’s report.

The market had been pretty flat for most of this morning, in anticipation of today’s report. What we have seen is a drop of oil inventories of 3.2 million barrels, and a decline of gasoline inventories of 3.4 million barrels. What is weighing the most of the market is the gasoline inventories, as the nation is already dealing with record high gasoline prices, that are only predicted to go up even higher as we progress into the heavy demand summer driving months.

While the nation is dealing with the record high gasoline prices, it is expected that for the first time in 20 years, Americans will actually demand less gasoline this summer. This is definitely being viewed as a direct result of just how high prices have hit lately.

For a better illustration of just how strong oil prices have been lately, let’s close by taking a current look at an oil graph:

oil chart

So what are your thoughts? Are you going to let current gasoline prices impact your summer travel plans? Or will you continue to pay the high prices in order to keep your vacation plans alive?

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