Jeff Rubin, chief strategist and chief economist at CIBC World Markets in Toronto, said that global oil production has decreased in the past two years, straining supply. 

"Whether we have already seen the peak in world oil production remains to be seen, but it is increasingly clear that the outlook for oil supply signals a period of unprecedented scarcity," Rubin said in a statement.

"Despite the recent record jump in oil prices, oil prices will continue to rise steadily over the next five years, almost doubling from current levels." 

A growing car economy in regions including Russia, Brazil and China has boosted demand for oil, Rubin said. Moreover, India's mini-car the TATA, which is set to sell for about 2,500 U.S. dollars, is expected to significantly bump up demand for gasoline. 

In Canada on Thursday, the national average of a liter of gas reached 1.23 Canadian dollars (1.23 U.S. dollars). In some cities it went to as high as 1.40 Canadian dollars (1.40 U.S. dollars).