Oil Prices Surge

Oil surged Wednesday, rising a remarkable $5 a barrel to a record over $104 after the government reported a surprise drop in crude oil stockpiles and OPEC held production levels steady. Most analysts had expected the Energy Department's Energy Information Administration to report oil supplies rose last week for the eighth straight time. Instead, they fell by 3.1 million barrels. In Vienna, meanwhile, the Organization of Petroleum Exporting Countries said it would hold production levels steady for now.The EIA report and OPEC announcement fed a new frenzy of investing in oil futures, which have risen o new inflation adjusted records this week as the falling dollar drew new investors to the market. The falling dollar is really scary.

Airfare Increases Follow Rise in Oil Prices

Airlines are responding to oil's latest surge by pushing ticket prices even higher. Round trip domestic fares began rising $10 to $20 or more as crude futures crossed the $100 a barrel mark. Several major carriers increased their prices, each citing higher fuel costs as the reason. The widespread increases follow nearly two dozen attempted systemwide fare increases in 2007, or about double the number during the previous year, according to data compiled by FareCompare.com, which tracks airfare changes.