The media continues to report that the world is greatly oversupplied with oil and this continues to have a negative effect on oil prices. The EIA and IEA both appear to be underestimating worldwide demand for oil by nearly 2 million barrels per day. The EIA lacks reliable production figures for any state except for Alaska. The figure that the EIA adds to actual crude oil stocks before reporting has increased greatly in recent weeks. The oil price decline has led to cutbacks in capital spending, which is likely to exacerbate an oil supply shortage going forward. For quite some time now, the media has been discussing the oil supply glut that has been blamed for pushing down the price of oil from its previous peak in the middle of last year. However, there is now an increasing amount of evidence that the extent of the supply glut […]