Faculty of Economic Sciences
Asia whose growing share in world output is also raising the oil
demand of the world economy as a whole. Furthermore, a thin margin of spare
oil production capacity is expected to continue into 2007 despite new supplies
from both non-OPEC and OPEC countries, as existing production comes
close to its short-term capacity while some existing fields, e.g. the North Sea,
suffer from declining yields. Rising crude oil stocks, which are close to five-
year highs, will do little to dampen the oil price given the lack of spare capacity
in oil production. Capacity utilisation in global...
