[bruinbirdman]

This is always a pet peeve with me. Different scales on comparative graphs. So, why does Oil Market Report by International Energy Agency use a scale of 2 mb/d increments for demand and 1 mb/d for supply?

In any event, it appears that supply tracks demand within a narrow price range. There seems to be no problem with supply.

Nigerian rebels shut down 200K bbl/day? Saudi Arabia tells GW it will do him a favor and increase output 200K/day.

India and China increase their demand/year? More Iran output comes on line.

Oil at $140/bbl? Congress refuses to amend Udall moratorium on oil shale production in Colorado and Utah.

yitbos

[rurgan]

Just one example:

If you look at the last bars on the graph that represent the latest numbers for 2008 you will see that Demand is at 88 million barrels per day while Supply is at 87 million barrels per day. That means that Demand is greater than supply hence the rising oil prices.

Oil at $140/bbl? Congress refuses to amend Udall moratorium on oil shale production in Colorado and Utah.

On Democrats banning oil shale production ,the Udall moratorium on oil shale production, causing the $140 oil, you are absolutely correct on that.