Gas prices climbed 3 cents overnight to hit a new national record of $3.65 per gallon, while oil prices paused for the day on profit-taking by traders. A survey by AAA and the OIl Price Information Service showed that regular gas nationwide rose 2.7 cents to a reocrd $3.645 while deiesel prices matched the record average at $4.251 per gallon.

Gas prices tend to lag oil futures prices, so crude oil's move higher is bad news at the pump. Crude contracts hit a record $124 per barrel yesterday, which means that the average price of gas may soon rise to over $4 per gallon. In fact, if the move continues, few can argue that it will be possible for gas to stay under $4 per gallon.

Things will only get worse with analysts at some investment banks predicting $150 to $200 per barrel oil prices within two years. These forecasts were issued just days after oil hit record highs and are backed up by economic forecasts showing consumption in China and other developing nations on the rise.

Many other analysts insist that trader speculation is the only reason that oil prices so high. In fact, some say that there is little reason for oil to be above $60 per barrel.These are the same analysts that insist that the dollar's decline is the real reason behind the spike in oil and an upcoming rebound could relieve oil prices quickly.

So, how high will gas be over the next few months? That remains to be seen...