Capital Region Gas Prices Hit $3.99

Mac Brownson is ordering a product that didn't exist two years ago: a "5." for the sign that displays gas prices in front of his Albany service station.

"Within the next year, we'll be at $5.00 per gallon," Brownson said. "That's what I believe."

Friday morning, many Capital Region drivers were paying $3.99 for a gallon of regular unleaded, with prices expected to top $4.00 in a matter of days. On Wall Street, oil prices reached a record-high $127 per barrel.

Many lawmakers believe prices at the pump would drop if other countries increased oil production, but Saudi Arabia rejected President Bush's request Friday, claiming oil companies are not asking for more.

CBS 6 contacted several major oil companies who purchase oil from the Saudis, but none called back.

Senator Chuck Schumer (D-NY), speaking in Watervliet, said Saudi Arabia's actions are unacceptable. On Thursday, he and four other Democratic Senators passed a resolution to block arms sales to the Saudis unless they boost oil output.

"If they were to increase production a million barrels a day -- and they easily could; they were at that level in 2005 -- the price of gasoline would go down immediately about 50 cents per gallon," Schumer said. "That's a good first step."

Unfortunately for cash-strapped American drivers, it's an unlikely step. Schumer's resolution requires the support of Republicans in the Senate and House, as well as the signature of President Bush. The Bush Administration wants Saudi Arabia to have the weapons to balance Iran's military influence.

However, even if all of Washington were on board, the same could not be said for Wall Street. Oil speculators are a huge part of the problem, gas station owner Brownson said.

"Speculators are allowed to speculate; that's what they do," he said of the wealthy investors. "They lose money, they make money. Right now, in my opinion, they're making money and they're driving-up the price."

Back at the pump, prices continue their steady climb -- and the morale of drivers continues its steady drop.

"It's too high," one motorist said of the price. "I fear I'm going to have to go to the bicycle."