From the excellent source This Week In Petroleum , it looks like the astronomical prices are beginning to affect demand:

Distillate Demand (Million Barrels per Day)
Four-Week Averages
03/14/08 = 4.233
03/16/07 = 4.537

Also, if you look at some of the historical graphs, the phenomenon of a pre-election price drop doesn't seem so imaginary. Just compare odd vs. even numbered years. At the very least, I expect the speculators will cash out to avoid the risk.

This too shall pass. I hope.