In short, the events of today are laying the groundwork for drastic increases in oil price for the near future. If you care about my recommendations, prepare for sharp swings in price as the price responds to demand side signals. These will come about at even lower levels of economic activity as the supply side becomes constrained.
As mentioned in the first comment, the following youtube does a great job of summarizing this:
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I would be interested in seeing a comparative chart with World Oil prices, the retail price and the value of the CDN dollar.
When a barrel was trading around $140 gas in the GTA was around $1.35 per litre...Now its down around $40 per barrle and we're paying about 80 cents.
The Canadian dollar though has pulled back significantly from being over par...but I still think we're bing hosed (pun intended).
I've thought about doing a chart for it myself, I just haven't bothered to search around for the data yet.
BTW...great blog...I put up adsense myself on Dec. 10/08 and I'm nearing a whole $20 which means I'll be supersizing my dinner sometime next year.
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