$112

Next stop: $4 per gallon.

Oil surged to a record high over $112 a barrel on Wednesday after a government report showed a sharp drop in U.S. inventories ahead of the summer driving season.

U.S. crude settled up $2.37 at $110.87 a barrel after peaking at $112.21 and eclipsing the previous record of $111.80 hit March 17. London Brent settled $2.13 higher at $108.47 a barrel after hitting an all-time high of $109.50.

Remember when we were all shocked when oil closed above $100 for the first time? That was only 50 days ago. And by the end of next month, $112 a barrel will look like a bargain.