I think overnight there was another focus on the bank of Canada statement and it pushed aside the oil sell-off, as monetary policy is probably going to have a longer term role than oil.

Then the price of oil went down and the rest of Canada, of course, were wringing their hands in glee saying, 'Oh well, you deserved it.'

There's a lot of focus in the bond market on oil. It's been such a hot story because of people's fears of higher inflation.

When you have a focus on an issue like Iran, hoarding tends to be prompted. Crude oil is not the only area where hoarding occurs; it also takes place in the products. Distributors like to stay ahead of the price rises and hedge by buying additional supply.

The question is whether prices are sustained -- then the burden of oil subsidies comes under stronger focus. It needs careful political consideration to avoid a backlash.

What Canada needs is a shift in focus away from consumption and towards savings and investment,