What will happen when there is less oil? U.S. oil demand will fall, whether anybody likes it or not. The oil will simply not be available in the volumes that the government, industry and people in general have come to expect. So the phenomenon of declining oil use will not be voluntary, graceful or cheap.

I spoke on this subject in the middle of April, but there is more news coming. “News of falling oil output has hit Moscow political circles like a bomb.”

Silver stuck its nose above $18 for a moment, but obviously someone noticed, as the spike didn’t last long. Volumes were extremely light again yesterday.

Pump prices have hit a second year high at $3.32 a gallon.

The price of a gallon of gas, which according to a recent New York Times/CBS News poll caused Americans most concern when it came to the economy, has risen five cents since March 21.

Higher prices at the pump are due to the rising cost of crude oil and ethanol, according to the Lundberg Survey quoted on CNNMoney.