>Recently the demand level has gone way down here (a first) as a result of the higher prices (according to experts and media sources) and we have been preached to for years that the only way to bring oil prices down is to decrease our demand yet the prices are still expected to double during the next year. I suspect demand has gone way down around the world as well as a reflection of the high prices.

http://www.eurotrib.com/story/2007/10/26/14216/498

For the rest of the world it is a level reached once before (in barrel per Euro and oversimplifying that the greenback fell against all currencies.

Have not checked the figures for demand, as consumption # demand if stockpiles are filled to highten national security<g>. And yes, somehow our gasoline prices are much higher than in mid 2006 even if tax increases are factored in, and the rising oil prices are cited as a reason. Similar public opinion correcting measures could be seen recently here when milk prices were "raised" after a "strike".

>
>
>>>SNIP
>>>>Where outside of the US is it prohibited from increasing supply?
>>>>
>>>>Has demand grown 40% this year?
>>>
>>>So much for supply and demand:
>>>
>>>As expected, the IEA cut slightly its forecast for annual oil demand growth, but surprised the market with a deep reduction in its forecast for supply growth from non-Opec nations, leaving the world more dependent on the producers' cartel.
>>>
>>>http://money.ninemsn.com.au/article.aspx?id=577986
>>
>>Where do you see suplly and demand rules broken ? Base your assumption on limieted resources
>>and the current price is actually LOW if seen as percentage of alternate energy replacement.
>>So "hoarding" comes into play (price increases > tenfold of usual price are often seen after
>>after natural disasters) as the suppliers realize that they are selling a non-replaceble resource
>>clearly under value.