Oil Prices Hit New Records

Retail fuel prices hit a new high Monday and crude settled above $127 for the first time, tightening the squeeze on drivers planning holiday road trips this weekend, the Associated Press reported.

Crude hit a record $127.05 a barrel, while the average cost for a gallon of regular gas was $3.79, according to AAA and the Oil Price Information Service. Diesel was at $4.52 a gallon.

"We’re looking at $4 a gallon (for regular nationwide) once we get past Memorial Day and into June, given the oil prices we’re seeing today," said Geoff Sundstrom, fuel price analyst at AAA.

Drivers in some parts of the country are already paying more than the average. Prices in parts of California have been stuck above $4 a gallon for weeks now, with the statewide average down to $3.96. Prices in Alaska and Connecticut are averaging just above $4 a gallon.

The soaring prices compare to the national average of about $3.23 a year ago.

A report released Sunday showed retail prices topped an average $4 a gallon for the first time in two metropolitan areas: Chicago and New York’s Long Island. The Lundberg Survey of 7,000 stations nationwide found the cheapest city to be Tucson, Ariz., where a gallon of regular sold for $3.48 on average.

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