Greg, the article needs a lot of correction:
1) "Incremental world oil demand this year is set to slip to 900,000 bpd marking a slump from two million barrels daily of growth in 1997."
"Slump" sounds bad - but we're not contracting, according to the EIA (our own US Dept of Energy, Energy Information Administration) consumption demand for oil will grow by 1.2 million barrels/day more in 1998 than 1997 (compared to the forecast of 1.5 million barrels/day before the Asian Crisis).
2) "The Organisation of the Petroleum Exporting Countries led a reduction of world supplies in July of some 500,000 bpd to 75.16 million."
Way off - according to EIA, the July 1st cutbacks totaled 1,595 million barrels/day.
3) But, said the IEA, even assuming further supply cuts the world's hoard of oil is likely to grow even further in July and August.
Wrong. The total world price of oil has climbed weekly in July from $11.00, to $11.17, to $11.30, to $11.49, and finally to $11.90 week ending July 31st largely the effects of the supply cuts.
IEA is not to be confused with EIA. IEA (whoever they are) is drawing incorrect conclusions and is inaccurate with the facts.
Best of luck,
Steve
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