Gas Prices Won't Stay Down Forever

"And that spread has been widening and widening and widening," he says.

Many factors that influence daily fluctuations in oil prices: Weather conditions, strife in petroleum-producing regions, OPEC's production targets, the strength of the dollar, and the bearish or bullish viewpoint of speculators. But despite those factors, and the recession-related hiccup, two core elements seem sure to drive prices higher over the long term -- limited supplies and a return of global demand, even if the latter is taking a pause.

This week, the International Energy Agency said it expects global oil demand this year to be roughly in line with 2007 at around 86 million barrels a day. Next year, the agency believes demand will creep up by a few hundred thousand barrels, but decline in the world's most developed nations.

Our economic fire is kindled mostly by a finite set of fossil-fuel resources. Efforts to kick-start development of alternative energy have had a muted effect so far, since such technology is limited and adoption is not yet widespread.

Investment in oil-exploration projects has also abated, as major producers such as Exxon Mobil (XOM Quote), Chevron (CVX Quote), ConocoPhillips, (COP Quote), Royal Dutch Shell (RDS.A Quote), BP (BP Quote), Anadarko (APC Quote) and others hang on to recent record-breaking profits in light of the tough quarters ahead.

At the same time, the global population is growing and emerging economies, like the so-called BRIC nations of Brazil, Russia, India and China, are advancing. For instance, although the International Monetary Fund has slashed economic forecasts dramatically, it still expects global growth of 2.2% next year, driven in part by a 5% gain in emerging economies.