While American taxpayers have been giving away billions to mining companies, it seems likely U.S. motorists will soon be gouged anew at the gasoline pump.

Crude oil prices hit a record high last week, in large part because of an unexpected drop in U.S. crude oil stockpiles. Analysts had predicted an inventory increase of about 100,000 barrels. Instead, the available oil supply fell by nearly 4 million barrels.

When inventory declines, prices shoot up. It/s an economic reality that has sent the oil markets on a wild ride in recent months. Experts now believe crude oil prices will top ,100 a barrel before the end of the year.

Oil industry bookkeeping is more convoluted than a John le Carre spy novel. You never really know who/s doing what to whom until the very end.

For U.S. consumers, that translates to 7 you guessed it 7 higher prices at the pump. The steady upward price trend is likely to get worse in the next few months, as oil supplies will be diverted for heating homes and businesses.

About the time the spring thaw comes around, and the demand for heating fuel wanes, oil companies will be preparing their pricing strategies for next summer/s vacation driving season.

And consumers really have only one defense 7 use less fuel.

November 5, 2007