Gasoline prices are nearing a new record high. Over the past two weeks, prices at the pump have jumped 20 cents, adding to a total rise of nearly 54 cents over the past nine weeks, according to the Lundberg Survey.
However, some of the increase can be attributed to refinery shutdowns because of maintenance that normally occur around thus time. Further, crude oil prices are now going down, and wholesale prices are "starting to tumble," says Survey publisher Trilby Lundberg.
Bottom line, there is a tug of war between increased oil productivity and Bernanke money printing. The gains in productivity will, from time-to-time, damper energy price increases, but in the end, Bernanke is likely to flood the system with so much money that it will override the downward price pressure as a result of growing US output.