I just fuel up on $2.39/gal gas yesterday.... the most I've ever paid for a gallon of gas... Oil hits record $68 on storm, gas draw Thu Aug 25, 6:10 AM ET LONDON (Reuters) - Oil surged to a record $68 a barrel on Thursday, hounded by supply concerns due to a growing threat to oil facilities from an Atlantic storm and a large fall in U.S. gasoline stocks. U.S. light crude was up three cents at $67.35 a barrel by 0958 GMT, pausing after hitting $68 in early trade, the highest since U.S. crude futures started trade in 1983. London Brent crude was up 12 cents to $66.13. Dealers are concerned about a thin stock cushion after a rash of disruptions and tensions in oil-producing countries cut crude output and propelled prices to a series of record peaks. Gasoline stockpiles in the United States, the world's top oil consumer, beat forecasts to register a slide of 3.2 million barrels in the week to August 19, widening the supply gap from a year ago, the government Energy Administration Agency said. Stocks of the auto fuel have contracted for eight straight weeks, led by higher demand as the peak driving season has almost two weeks to run its course. Compounding the fears, a tropical storm is swirling toward Florida, threatening U.S. oil and gas production facilities in the Gulf of Mexico. "The market is really starting to get unhinged," said John Brady at ABN AMRO in New York. "The majority can be attributed to the storm, and some geopolitical concerns as well." Tropical storm Katrina, which formed in the Bahamas on Wednesday, was moving on a path that would likely cut across southern Florida and into the Gulf of Mexico later this week, the U.S. National Hurricane Center said.