You certainly know that energy prices have gone up this year. In particular, the price of oil has risen. And energy price increases have played havoc with Western economies.

On the supply front, Nigeria’s president said the country’s state-owned oil company will take over operations in the Ogoni district of southern Nigeria from a Royal Dutch Shell joint venture. President Umaru Yar’Adua made the announcement after talks with French President Nicolas Sarkozy, saying that the move will “calm down” unrest among local residents.

What you’re looking at below is a chart of the gold-to-oil ratio. The gold-to-oil ratio is exactly what it sounds like. You simply take the spot price for an ounce of gold — around $900 per ounce as of this writing — and divide it by the price of a barrel of oil.

The increase in Saudi Arabia’s oil production in response to a request by President Bush amounts to only a “token” rise in output, according to an oil expert quoted in Bloomberg.

“It’s just a token increase but it shows that the Saudis realize just how important it is for the president to not come back empty handed,” said Peter Beutel, president of Cameron Hanover Inc. in New Canaan, Connecticut. “This is about a lot more than oil, the special relationship between the countries is at stake.”

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In the energy market Thursday, crude for June delivery fell for the third straight day, dropping to $112.52/barrel, down 94 cents. June reformulated gasoline declined 2.81 cents, to $2.8782/gallon.