Oil prices surged to a new record high Monday as the dollar weakened to another low against the euro.
Now some economists are warning about paying $4 a gallon at the gas pump. But for some parts of the country, that time is now.
"I'll drive farther and use more gas to not pay over $4," said one driver in San Mateo, Calif.
Analysts say it's not just a supply-and-demand issue. The falling dollar has prompted some investors to move their money out of the stock market and into oil and other commodities.
Light, sweet crude for April rose to $103.77 on the New York Mercantile Exchange. That's higher than what many analysts believe oil hit in 1980, when adjusted for inflation.
Crude futures offer a hedge against a falling dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the dollar is falling.
That, experts say, could drive up gas prices even more, which they sat are likely to go even higher during the peak driving season this summer.
Source: CBN News, The Associated Press