Experts roundly agree that the recession is only a short-term blip in the long-term escalation of oil prices. And this time, there are 1.05 trillion reasons why oil is going to climb well past its peak last year.

Oil has staged an impressive rally since dropping below $35 a barrel in mid-February, soaring 42% in little more than a month to about $50 a barrel.

Recently, legendary Texas oilman T. Boone Pickens made headlines with another big bet on energy…but it was No ordinary oil & gas investment.

A month ago, I wrote an article here in the A-Letter detailing the global food crisis. According to data from the World Bank, global food prices have soared 83% in the past three years alone.

Produce Prices Up Modestly; Target Earnings Off the Mark; Coal Shortage in China; Icahn’s Yahoo Battle Gains Support; Whitney Slashes U.S. Bank Outlooks; Sacked Earnings for Saks; Merck’s Vioxx Settlement; Fed on Pause, Says Kohn.

In the energy market Thursday, crude for June delivery rose to a new closing high, ending at $127.05/barrel, up 76 cents. June reformulated gasoline rose 2 cents, to $3.24/gallon.