| World crude oil futures prices set a new record close | | | | out. "In fact, many members are already producing |
| Tuesday on supply concern despite the world's major | | | | beyond their quota so an extra half a million barrels is |
| oil producers decided to raise their daily output. Light, | | | | really not going to have a meaningful impact on |
| sweet crude oil for October delivery rose 74 cents to | | | | satisfying demand especially as winter approaches," |
| 78.23 a barrel on the New York Mercantile Exchange. | | | | he added. |
| The former highest-ever settlement price for a | | | | The demand for oil is increasing. Oil is playing more and |
| front-month contract was 78.21 dollars a barrel, set on | | | | more important part. Oil prices have been risen 27 |
| July 31. | | | | percent this year and have tripled since 2002 as |
| OPEC, which produces about 40 percent of the | | | | investors buy into growing consumer demand, real or |
| world's oil, agreed late Tuesday in Vienna to boost its | | | | potential supply disruptions in producers such as Nigeria |
| crude oil output by 500,000barrels a day, which would | | | | and Iran and infrastructure constraints such as a lack |
| take effect on Nov. 1. OPEC officials said the | | | | of refining capacity. |
| agreement would add oil to current production levels | | | | The U.S. Energy Information Administration, the Energy |
| over their current 25.8 million barrels per day quota | | | | Department's reporting arm, warned Tuesday in a |
| ceiling. | | | | monthly report that tight global energy supplies are |
| However, the cartel's move could not ease investors' | | | | expected to keep energy prices high through 2008. |
| worries that the current oil production would not be | | | | According to the U.S. Energy Department, global |
| enough to boost thinning world inventories. "The fact | | | | petroleum consumption will probably increase 1.27 |
| that OPEC indicated that it would boost oil production | | | | million barrels to 85.7 million barrels a day this year |
| by additional 500,000 barrels makes great headlines, | | | | while demand will rise by 1.51 million barrels, or 1.8 |
| but is unlikely to achieve the stated result of meeting | | | | percent, to 87.2 million barrels a day in 2008. |
| demand," Wall Street Strategies' senior research | | | | World oil production is expected to average 84.64 |
| analyst Conley Turner told Xinhua. "Even though the | | | | million barrels a day this year, up 14,000 barrels a day |
| cartel is saying that this production increase that will | | | | from 2006, according to the department. Output is |
| commence in November, the reality on the ground is | | | | forecast to rise by 2.42 million barrels to 87.1 million |
| that production is already at full throttle," Turner pointed | | | | barrels in 2008. |