There does seem to be a supply shortage in the oil markets at present. Well, of course, obviously there is, that’s why the price has risen. We’re all entirely out of $80 oil which is why the price is higher than $80. However, I think there’s a small thing being left out of this particular analysis:

“The unpleasant fact we must all face is that the relentless supply crunch – call it `Peak Oil’ if you want, or `Plateau Oil’ – was briefly disguised during the Great Recession and is already back with a vengeance before the West has fully recovered.

The IEA said non-OPEC production stalled in 2010 and 2011. There was no net increase. While there was a boost from Canada’s tar sands, and America’s shale-oil, and Brazil’s offshore rigs, this was offset by the relentless erosion of the North Sea fields and Mexico’s operations, a collapse in the Sudan, and Libya’s woes.”

via Peak or Plateau Oil, Oil Prices and Economic Growth – Forbes.