I have been trying to plot the canadian dollar, oil price per barrel, and gasoline prices at the pump, over the last couple years to try and draw any worthwhile conclusions as to what is going on in the retail world. My personal view is that high oil prices are like the kryptonite to the world economy. Clearly the higher oil prices go, the less disposable income consumers have to purchase other goods and services. Our economy, and economic growth is dependent on cheap oil. In June 2008 oil peaked at $150 per barrel... markets then cascaded downward and the worst recession since the depression ensued. But what I find unusual is that despite bearish inventory data, a stronger canadian dollar, a recently a significant drop in oil prices, the price at the pumps is edging up another couple cents to over $1.41/L.
I can remember when I got my TDI Volkswagen, diesel was $0.33/L and about $20 to fill the tank (55L tank). Man, I miss those days.
Gas prices will have to come down, I am confident they will. More people should be walking, or riding bikes if they can, and the amount of savings you can enjoy are quite significant.
No comments:
Post a Comment