I am simply embarrassed for the journalist that wrote the story.
Demand for oil in 2008 will be above 2007 demand IF THE OIL IS AVAILABLE. If it is not available, we can't demand that which is not there.
To read this article one would think that the world was about to experience an oil GLUT. Yet total OECD oil inventories, as measured in "days of supply" is at the lowest level in in years.
The WTI crude front month contract closed at $92.79! Does the reporter realize that 5 years ago the OPEC price "band" for its average price for all grades was $20 to $28?
OPEC likely cannot increase production. Even if they could, it might be dawning on them that it is not in their best interests to do so. If either case is true, this is it. The U.S. economy is sitting on the oil import crisis time bomb, and the fuse is lit. Still, even so, the sensation will not feel explosive, more like Chinese water torture.
Of course, I could be wrong and OPEC has plenty of spare capacity... Then why are we making that huge investment to wring oil from the Tar Sands of Canada? If OPEC has so much spare capacity, why destroy the environment of Alberta, apply to build nuclear plants there (in order to cease using Natural Gas to as a heat input), drill in 7,000 feet of water and 23,000 feet of rock and earth off the coast of Brazil and the Gulf of Mexico, and use THE VERY FOOD WE EAT as fuel? Come on, would ANYBODY do ANY OF THAT if we could just buy the Oil from OPEC? NAFC. (That's a technical term - Not A F%$^ Chance).
If I blew in this reporter's ear he would thank me for the change.
Yours for a better world,
Mentatt (at) yahoo (d0t) com
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