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When the OPEC nations meet in March, the plan is to cut oil production again.  OPEC is trying to push oil prices to over $70 a barrel, where current prices have been between $35-$50 per barrel the past few months.  Since the start of the worldwide recession, oil prices have dropped from a high of $147 per barrel down to current prices at $40 per barrel.  OPEC has been determined (although so far unsucessfully) even during this recession to try and cut back to keep the bottom of oil prices at $70 per barrel.

For the first time in history, national gas prices have hit the average of $4/gallon.  With crude oil increasing about $16/barrel in the past two days, it doesn’t look like the gas price increases will be dropping any time soon.  Diesel fuel continues to climb as well, creating a huge chunck of inflation in our futures.  The increase in diesel fuel which is used by semi-trucks to deliver all the goods consumers use is increasing the costs for everything consumers purchase.

Oil increased over $10.50 a barrel on friday, just after a $5 increase the day before.  The two day total of over $15.50 will be seen very shortly at the gas pumps as prices continue to hurt the consumer.  The oil turmoil over the high energy costs has fueled high speculation in solar stocks.  First Solar (ticker FSLR) has a high this year over $300/share with expected earnings of less than $3/share.  Next year it’s earnings are expected around $5.75/share.  With price to earnings ratios of $50 - $100/share, you have to wonder if there is a hugh bubble starting to form in the Solar stocks.  Will the solar stocks in 2008 be the internet stocks of 2000?

The average national gas prices have cleared the $3.64 a gallon mark and continue to look higher.  Gas prices usually follow oil prices and oil hit a record $124 a barrel.  Analysts expect the national gas average to hit $4.00 a gallon later this summer as their looks to be no relief from this in sight.  Bullish momentum and the weakening US dollar look to continue the push towards even higher record oil prices.