Oil and gasoline are skyrocketing for two main reasons
1. The Dollar: While this is the lesser reason, it does figure in the equation. With commodities priced in dollars, inflation in the US drives safe havens in commodities.
2. Traders: This is where it is really at. There is so much money chasing the market, from everywhere: Mideast, China, Europe, Emerging Markets, Developing Markets, the US Mutual and Hedge funds, as well as equity markets. All that money chasing a return and "SAFETY" make the Commodities market subject to wild girations. Much of this money was in the Financial markets before the collapse. Now, all that money can move the market anyway it wants to. As someone on CNBC yesterday said, there is a lot Hanky Panky goin on!"
Mike