Global demand drives up oil price

The oil price undoubtedly has peaked. With OPEC production above what is required and US inventories rising there is good reason to believe prices will drift downwards. There are, however, good reasons to believe that the near and medium-term outlook is still good. The combination of relatively strong demand for crude and, crucially, low spare capacity is likely to continue to keep prices above historical averages. Oil prices have been driven up primarily by strong global demand. GDP which grew by 1.3% in 2001, 2.1% in 2002, and 3% in 2003 is forecast to grow by about 4% in 2004. This, no...