Tundra, A couple of observations:

#1. Now that the Fed has signaled a likely end to rate cuts, this may moderate pressure on the spot and future markets and eventually steady price increases at the pump - at least until the elections. But the perverse effect of this will be the failure to dampen demand - the US consumer being sort of like the boiled frog. I.e., the administration is trying to curtail the shock (expect more pandering by McCain), and the inexorable march to $6 gasoline (and beyond) may take a bit longer - while the subsequent fall off the cliff will be even steeper.

#2. Reading the article in the NYTimes today on LNG, it struck me how natural gas is also becoming a fungible commodity, and while natural gas prices have been more stable in the past, these could also quadruple now that our sources and distribution infrastructure are being questioned. KS Deffeyes and others have also pointed out how vulnerable LNG is to terrorist attacks, but now it seems that globalization of the market (and depletion of local resources) puts the American consumer and the dollar into the same bidding market as the Euro and the Yen.

All of which makes it a possibility that the owners of McMansions in the exurbs will still need their cars to drive the family to a warming center in coming winters. :-)