China really is greatly increasing its demand for foreign oil, thus becoming a major factor in global demand, which in turn is starting to outpace production, thus resulting in a price increase.
http://www.eia.doe.gov/emeu/cabs/china.html "China was the world's second largest consumer of petroleum products in 2003, surpassing Japan for the first time, with total demand of 5.56 million barrels per day (bbl/d). China's oil demand is projected by EIA to reach 12.8 million bbl/d by 2025, with net imports of 9.4 million bbl/d. As the source of around 40% of world oil demand growth over the past four years, Chinese oil demand already is a very significant factor in world oil markets." General instability in the middle east could definitely contribute to a rise in prices, but only a permanent increase in demand, or a permanent increase in production, will lead to a long term price change. The higher the price of oil gets, the more pressure will be placed on increasing production. Venezuela has a much greater impact on local US fuel prices however, as it is the top supplier of oil to the US. The strike, and general political instability in 2002 and 2003 resulted in a huge decrease in oil exports, and even now the levels have not fully returned to their pre-strike levels. Furthermore the future growth of production in that country is at risk because of the political situation, thus limiting investment that would lead to future expansion. http://www.eia.doe.gov/emeu/cabs/venez.html Just thought I would add some more details to the discussion. John _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
