What's the reason behind the seeming discrepancy? It's not an Al Gore-led conspiracy (at least, we don't think it is). Apparently, the price of oil that is quoted in most places is from oil drilled by in west Texas by West Texas Intermediate (WPI) which, in a weird market price inversion, is now cheaper than the oil that reaches our refineries from places like Venezuela and Canada. The refineries, for their part, don't see demand increasing any time soon and have cut their production levels. That limits supply and, voilà, we get higher prices. While we don't enjoy paying more for gas than we have to, perhaps a moderate rise from current levels may keep some folks from needlessly buying vehicles the size of container ships to commute in.

Which means that Energy prices will soon move up to meet this discrepancy. OPEC announced the delay of 35 oil projects to boost prices...all the fundamentals are pointing for higher oil prices. Even though demand is down I don't think the market can fight off higher prices for much longer. Unless of course the world suddenly stops driving cars, heating homes or producing well....anything!