Oil prices surge to all-time high

Oil prices reached $112 for the first time in history on Wednesday, after a government report said crude oil supplies have declined.

The EIA report, closely watched by the futures market, also said crude oil supplies fell by a surprising 3.2 million barrels last week; analysts surveyed by Dow Jones Newswires, on average, had expected an increase of 2.4 million barrels.

Gasoline prices are expected to continue to rise if more oil is not refined. According to AAA, the average price at the pump also set a new record today at $3.343.

Refining levels are currently at 83.1%, according to the EIA. They should be running at 89% to 90% this time of year, said Mark Waggoner, president of Excel Futures, a California-based commodities trading firm.

"Oil companies need to ramp up ... fast," he said.

I have an even better idea. Why don't we stop driving gas-guzzling SUVs and drive Priuses instead?