Gas up, oil down

After hovering just below $100 a barrel last week, oil futures are coming down, closing today at $95.09. The sell-off reflects a growing belief in the financial markets that the economy is slowing down (and a slower economy means lower demand). Meanwhile, L.A. gas prices keep going up - the government's weekly survey finds that the average price of regular is $3.316, up from $3.271. Gas and oil prices can often diverge for any number of reasons, at least in the short term. Speaking of the economy, Merrill Lynch economist David Rosenberg says that we’re already in a recession, while Lehman Brothers just published a report concluding that the economy will slow but not tank. Glad we cleared that up.