Oil at $65

That dull thunk you're hearing is the engine of the global economy seizing up...

In case you're wondering, the price of oil on this day last year was $44.51. This means that the price of oil has increased roughly 45% in one years time. Apparently, famous oilman T. Boone Pickens (who incidentally should trademark his name) is predicting $75 for a barrel of oil soon. If we hit the $90 mark, we'll essentially be back at the height of the oil shocks in 1980. So essentially for the situation to get as bad as it was in 1980, oil only has to increase as much as it already has this year.

There's another thing worth mentioning: US gasoline prices this week averaged $2.38 - a price they haven't seen (in real terms) since the oil shocks. We are well into the range of prices once seen as a "crisis." Actually, we've been here since 2003 and haven't really noticed. I guess people are getting used to the new normal. I guess we'll get used to $1 a litre in Canada this year, then we'll get used to $1.50 and $2 as well.