all oil, all the time

Lotsa of people are writing about oil these days. "The Oil Price Mirage", by Pierre Lemieux, has some good background (and a chart!):

Now look at the last couple of years. Starting in 2003, crude prices climbed from $30 to around $45 by the end of 2004. Since the beginning of 2005, they have gained another 50%. This may be related to the second war in Iraq and the general political situation in the Middle East. But note that even after the recent run-up, a barrel of oil costs about the same as in mid-1982, when prices were going down.

Spotted via Mises Economics Blog.