AAA Gas Gauge: $3.962

Prices began to inch higher as flood waters in the center of the country and in the Mississippi raised concerns about supply. Crude also rebounded toward $105, after a sharp sell-off last week.

The impact of a possible change in oil company tax breaks is much too early to guess. But, such a move would almost certainly decrease margins, and that will pressure the firms to do what they can to
drive revenue higher.

One American habit has begun to change with higher gas prices. Public transportation traffic has risen. BART in San Francisco said that daily rider counts have moved from 360,000 last month to 375,000 more recently. The news puts municipalities in something of  bind. Many cities have created austerity budgets. The cost for fuel for public transport could increase deficits.

Douglas A. McIntyre