High Oil Prices

Oil prices continue to rise. Reuters reports:

Oil stayed within sight of a new record high beyond $75 on Thursday as investors fretted over gasoline supply in the United States, where drivers burn 40 percent of the world's motor fuel.

Prices have climbed more than $5 a barrel over the past two weeks, fueled by signs that U.S. pump prices near $3 a gallon have yet to pinch the wallets of motorists in the world's biggest energy user.

These high oil prices are bad news for the housing market. We are likely to see 4$ gasoline prices in expensive gasoline markets sometime this summer (with the hurricanes or international developments). Tough times ahead.