$132

By GottaLaff

Oy(l):

Oil prices bolted to a new record above $132 a barrel Wednesday after the government reported that supplies of crude oil and gasoline fell unexpectedly last week. And crude's rise in the futures market again pressured consumers by pulling prices at the pump higher -- a gallon of regular gas rose overnight to a new record above $3.80 a gallon.

With gas and oil prices setting new records on a daily basis, many analysts are beginning to wonder whether anything can stop runaway prices.

UPDATE:

Senators told oil executives Wednesday that high oil prices cannot be explained by supply and demand and the oil industry's concentration -- and OPEC price collusion -- is contributing to the costs facing consumers.

Executives of the five largest oil companies were appearing before the Senate Judiciary Committee.

Committee Chairman Patrick Leahy, D-Vt., said there's an unexplained "disconnect" between prices -- at nearly $130 a barrel -- and legitimate supply and demand.

"We need to get prices under control.... We can only conclude that the oil markets have failed," said Sen. Herbert Kohl, D-Wis.

But Shell Oil Co. Chairman John Hofmeister said the prices can be explained, saying, "The fundamental laws of supply and demand are at work."