The Dance

With the actual rock and roll situation of the international crude situation, were almost every day we see new
record prices, its not suprising that the local market and oil companies have started to silently increase the final consumer
price... a upward trend has been going on for well over two weeks.
The key statistic in the crude oil market is world surplus production capacity and that has improved from 1.0 million barrels per day in 2005 to an estimate of 2.0 million barrels per day in September of 2007, but that is still relatively tight and the politics of the Middle East and Turkey remain tense - especially with Iran. Roughly 20% of the world's oil flows through the Strait of Hormuz and Iran has the ability to block the channel. And world oil demand continues to grow.

On September 11, 2007, OPEC met and decided to increase its current production levels by 500,000 barrels per day, beginning November 1st. On October 9, 2007, the DOE estimated OPEC's actual production at 30.8 million barrels per day in September with 2.2 million barrels coming daily from Iraq. That was up from 30.2 million barrels per day in August. The DOE also estimated that world oil consumption will total 85.8 million barrels per day in 2007 and exceed production by 1.1 million barrels per day.