Clipped from www.chicagotribune.com
Demand, not speculation, cited for rising oil prices
High oil prices are here to stay, and they're caused by surging demand and limited new supply, not Wall Street speculators.
That's the message from Fatih Birol, chief economist at the International Energy Agency.
Birol said growth in worldwide oil demand is outstripping growth in new supplies by 1 million barrels a day per year.
Much of that new demand is coming from China, which is adding 800,000 vehicles to its roads each year, he said, and is responsible for fully half of the world's demand growth. Birol noted the growth in China's oil consumption is equal to all of the new output expected from Iraq over the next few years.
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