In what I’m sure is true nationwide, fuel usage dropped in California nearly 12.5% in March. Airlines are flying less. The Middle East is opening more supply. China raised it’s fuel prices 18%. And all the other ripples that have happened from high oil prices. All of this begs the question…Why are oil prices still breaking records daily?

From mecurynews.com

Californians continue to drive less, trying to save a few bucks from gas prices that remain at near record levels.

The use of diesel fuel dropped nearly 12.5 percent in March from the same month a year ago, the largest monthly decline since 2004, according to figures released today by the Board of Equalization. This is the second consecutive quarter diesel consumption has declined.

And state drivers burned up 3.2 percent or 43 1/2 million gallons less in March than they did in the same month a year ago,.

Diesel prices now average a $5.07 a gallon in the state, down from a record $5.15 reached on May 30. Gas prices are at $4.58 a gallon, a decline from the $4.61 record reached June 19.

It may not be long before those prices begin to climb. Crude oil rose to a record above $143 a barrel Monday on concern Israel may attack Iran over its nuclear program and disrupt supply from OPEC’s second-largest producer.