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Page added on October 30, 2009

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Jeff Rubin: Get ready for triple-digit oil again soon

Nothing is shrinking faster these days than global trade. For the first time in decades, world trade volume, the lifeblood of the global economy, is actually falling. And chances are that downsizing is here to stay.

One reason global trade is shrinking is that most major economies have been contracting. Recession-scarred economies will of course recover. They always do. The Chinese economy is already on the mend and in time other economies will also get back on their feet. But unfortunately for an oil-hungry global economy, so too will crude prices

Whether we move goods by air, ship, rail or truck, the global economy runs on oil.

And soon that oil is going to cost more than we can afford. Long distance transoceanic trade is about to go the way of the gas-guzzling SUV. Both are relics of an age of cheap oil that no longer exists.

Oil prices are already trading at around $80 per barrel when the red ink hasn



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