The US government has one of the best websites out there on energy issues and prices. Check out this link to learn what the price of a gallon of gas is composed of. It's pretty easy to read and understand. The bottom line is, if we see $70/barrel any time soon, I'll be surprised. It wasn't too long ago that I thought $50/barrel as the ceiling was crazy. Now I'm anticipating $110/barrel in the not-so-distance future. My concern is demand destruction if we see $105-$115 range for more than 6 months and the effect on the world economy. My suggestion? When you get your tax rebate, bank it or pay down debt. Don't spend it on things you don't need. The two things might not seem related to you, but the higher those prices go, the more likely it is our economy is going to slow down even more than it already has.