It wasn't that long ago that oil breached the $30 "ceiling." And the word was it was temporary; the result of some unexpected short term problems. Now as oil breaks $100 per barrel under a steady stream of "temporary" challenges, you've got to wonder where it will end.
Oil prices vaulted to a record $100 a barrel on Wednesday as violence in Nigeria, tight energy stockpiles and a weaker dollar triggered a surge of speculative buying, dealers said.

Oil's climb to the psychologically key triple-digit price helped send stocks tumbling on Wall Street and further darkened an already gloomy economic outlook in the United States, which has been battered by a housing crisis and credit crunch.

"Oil hitting $100 a barrel has sparked some concerns about the consumer and inflation," said Todd Salamone, vice-president of research at Schaeffer's Investment Research.

US crude traded once at $100 a barrel, up $4,02, before easing back to settle $3,64 higher at $99,62. It remains below the inflation-adjusted high of $101,70 hit in April 1980, a year after the Iranian revolution.

London Brent crude rose $3,99 to $97,84.

Crude prices jumped 58% in 2007, the biggest annual gain this decade. Oil prices have nearly tripled since 2000 -- driven by rising demand in China and other developing countries, tight stockpiles and geopolitical turmoil.
extracts from M&G article here
How can inflation possibly be kept in check in the face of such massive increases in energy costs?