Eco Watch

International Energy Agency stated a reduction in OPEC spare capacity and delays to production projects will keep the oil market “tight”, despite a 3% cut in forecast global demand under its 2009-2012 outlook (Bloomberg, 01-Jul-08). OPEC President, Chakib Khelil, meanwhile stated members are concerned future demand for oil might not be strong enough to justify investment to boost oil production, as investment increases in alternative energy sources (AP, 02-Jul-08).