Projo Cars Blog

The price of oil was higher Monday than it's ever been, presaging increases for gasoline and other fuels — though not for long if oil speculators get cold feet and additional supplies hit the market as expected, according to USA Today's James R. Healey.

The closing price of $86.13 per barrel eclipsed the previous record of $83.69, set Friday. West Texas Intermediate — light, sweet crude — for delivery next month traded as high as $86.22 a barrel during the day, also a record.

Adjusted for inflation, the highest price recorded by the U.S. Energy Information Administration is $93.09, in January 1981.

The retail price of gasoline "would be about $3 this time of year if $86 oil is sustained," says Stephen Brown, director of energy economics at the Dallas Federal Reserve. Instead, the nationwide average for regular is $2.762, the EIA reported Monday. That was 0.8 of a cent less than last week, but 53.6 cents more than a year ago. A separate survey by AAA showed the average at $2.757 Monday, down 0.4 of a penny overnight.

---