Tanked up this weekend — and for the first time in a long while, I paid over $3 for a gallon of gas (93 octane premium).
Crude is now ~$63 a barrel.
Of course, energy has nothing whatsoever to do with inflation (ex-inflation), so thats no worry.
Whether this goes any further is still unknown. Since the GSCI weighting change, Oil has been unable to surpass $64. Indeed, as the 6 month chart below shows, Crude Oil has substantial resistance right at that point. So unless something very significant happens — Iran and Brits? Pakistan falls? Iraq gets even worse? — we can expect that it will take something very significant to help energy prices blast thru that level.
Note that the longer term (3 year) chart is far bottom, and implies a trading range of $56-64.