Just goes to show, doesn\’t it?
The German-based Energy Watch Group will release its study in London today saying that global oil production peaked in 2006 – much earlier than most experts had expected. The report, which predicts that production will now fall by 7% a year, comes after oil prices set new records almost every day last week, on Friday hitting more than $90 (£44) a barrel.
Supply reduces, demand goes up or stays static, prices rise. Thus all those who want oil at that new higher price get it and those who can substitute for the oil go and do so. Amazing how it works really.