The Petrol-Price Disconnect

If there is an oversupply of petroleum, why then, are gasoline prices
going up?

For educational purposes:

"Opec trims growth estimate for 2005

Source ::: Agencies
VIENNA: Opec shaved yesterday its estimate for growth of world demand
for oil this year, saying that the global economy seemed to be slowing
down.

The cut in estimated demand was "due to a slowdown in economic activity
in some regions and preliminary demand figures pointing to lower
consumption in the first-half of the year", particularly in China, an
Opec report said.

The Organization of Petroleum Exporting countries cut its estimate for
oil demand in 2005 by 150,000 barrels per day, putting total annual
growth for the year at 2 per cent, or an extra 1.62 million barrels per
day compared to 2004.

In 2006, growth is expected to slow to 1.85 per cent, with growth in
developing countries including China expected to be twice as much as in
the 30 industrialised countries represented by the OECD."


http://www.thepeninsulaqatar.com/Display_news.asp?section=Business_News&subsection=market+news&month=July2005&file=Business_News200507191119.xml

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