The gasoline inventories were lower than expected.  Not because of high demand, but because of low demand.  Refineries are cutting production with low profit margins.  The great thing is that this will have the impact of decreasing demand further.

Everyone knows that the negative side of high oil is high consumer goods inflation.  However, there is a bright side.  The longer oil stays high, especially above $100/barrel, the more research will pour into alternative fuels and technologies.  If you remember the result of the last oil crisis was the acceptance of the 'compact car' as a standard.  Everyone bought one.  This time around it is the hybrids, the electric cars, the fuel cells, solar technology, and eventually the hydrogen economy.

This may go against conventional wisdom, but the big oil producers are guaranteeing that oil will drop dramatically one day if these technologies take off *and* the price of oil stays high for the next 3 to 5 years.  If we can take the inflation pain that long, it will be a different world, and a different country.

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