Oil futures continue to spike.

As of the July 14, 2006:
Cash: $76.70
August 06: $76.85
September 06: $78.50
October 06: $79.30
November 06: $79.85
December 06: $79.70


Using my math workup from the other day here is a rough translation into gas prices in Southern California:

Cash: $3.465
August 06: $3.471
September 06: $3.538
October 06: $3.570
November 06: $3.593
December 06: $3.586

Between today and November 1 (110 days) I expect gas prices to rise 3.7%. And this is assuming that things don't escalate further in the Middle East, Nigeria, or Korea. Annualized, that is roughly a 11.5% jump in energy prices. Inflation? What inflation?

Interestingly, if you look at the analyst estimates for the big oil companies like Exxon Mobil or ConocoPhillips, you'll notice that they are predicting revenues to actually fall in 2007. British Petroleum doesn't seem to have this issue. I wonder if the market is predicting a sharp fall in the dollar or perhaps a mild recession in the United States? Obviously I don't understand the issues behind it, but I thought it was awful strange that analysts seem to show American based companies having flat or falling revenue in 2007, while a British company is showing a 10% rise.