Oil Price Off the Rails

The convergence of record high gas prices ($3.60 a gallon average across the U.S.), a presidential campaign, obscenely high earnings reports from Big Oil, and the prospect of $4 gas during the summer driving season has led to some rampant silliness, including the proposed


According to economics, soaring prices would, in normal times, lead to increased output of oil, reduced demand and a subsequent reduction (or at least a flattening) in prices. Indeed, in a little-noted development, U.S. demand for gas has actually slackened: