Oil prices rose to nearly $104 a barrel this morning, exceeding their inflation-adjusted high seen in the early 1980s during the second oil shock. Many analysts are attributing this surge in oil prices to investors seeking refuge in commodities to offset a slowing economy and declines in teh dollar, as well as to hedge against inflation. The big difference between now and the 1980s is the fact that supply was the issue then and demand seems to be the issue now..

From the New York Times:
Setting an all-time record, oil prices rose to nearly $104 a barrel on Monday morning, exceeding their inflation-adjusted high reached in the early 1980s during the second oil shock. Oil futures rose as much as $2.11 to $103.95 on the New York Mercantile Exchange. That level tops the record set in April 1980 of $39.50 a barrel, which would translate to $103.76 a barrel in today’s money.