The U.S. news media has convinced many investors that oil consumption is falling because of the global recession. While that may be true, it’s a disservice to millions of investors because production is declining at a pace that’s actually three times faster.

With oil finally trading back above the $50-a-barrel level, it’s time to recognize that crude prices are probably not going to remain low for very long, and may end up fluctuating in the $50-$80 range – regardless of what happens to the prices of other commodities.

The Canadian Markets continued to fall ever so modestly during Tuesday’s session as the price of bullion dropped below the $900 per ounce mark. For the tale of the tape, the TSX Exchange fell 0.50%, while the TSX Gold Index lost 2.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, gave back 0.98% with the decliners beating out the advancers by a 416 to 336 margin on volume of 126 million shares traded.

Despite another increase in the unemployment numbers in the United States, the Canadian Markets continued to rally during Thursday’s session. For the tale of the tape, the TSX Exchange climbed 1.40%, while the TSX Gold Index tacked on 2.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 0.90% with the advancers beating out the decliners by a 402 to 312 margin on volume of 147 million shares traded.

Suncor Energy Inc. (SU) said it will buy rival Petro-Canada (PCZ) for $14.9 billion (C$18.43 billion) in a deal that will create Canadia’s largest energy company, with a refining capacity of 433,000 barrels per day.

Crude oil prices slipped below $60 a barrel yesterday, taking the black goo to a 20-month low. But that doesn’t change the fundamentals. Oil production is levelling out, and will soon begin to fall. Andrew Gordon expects crude to soar back toward $200 after a short pause. And Big Oil companies that are still investing in new projects will shine.

With oil down more than 20% from its record high, Canadian energy stocks have been beaten down to more affordable levels. But as concerns over demand and refining margins grow, it can be hard to determine which Canadian energy stocks are still viable profit plays.

Strong oil exports helped to boost Canada’s trade surplus in June. The trade surplus increased to $5.4 billion (C$5.8 billion) from $4.8 billion (C$5.2 billion) in May, the national statistics office announced earlier this week. But a large part of that increase was due to higher prices, not higher volumes. Oil reached a record of $147 per barrel on July 11. Since then, oil has dropped to below $115 a barrel.

The drop in oil prices coupled…