Our government is printing dollars as fast as the presses will run. This ultimately devalues the dollar, and crude oil is a dollar-denominated commodity, so it will take more of the cheaper dollars to buy a barrel of crude oil.
Because of this, investors (yes, speculators) are running to NYMEX
as a safe haven for their investments and bidding up the price of crude oil and gasoline, despite the fact that this runup is unsupported by market fundamentals as inventories continue to rise.
Like most bubbles, this one will ultimately burst, but the underlying inflationary pressures will persist as our deficits increase.
On Edit: By the way, if carbon cap-and-trade becomes law, you ain't seen nothin' yet when it comes to gasoline, diesel, electricity, etc. prices!!!
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