Crude oil prices have continued to rise over the last year due to strong demand by recovering developed economies such as the United States and China, limited
spare production capacity in oil producing countries (or unwillingness to add more), and political instability, such as what we are seeing in Libya.
Crude oil demand continues to surprise to the upside and growing risks to supply from Isis and the like may get the market to start focusing on the lack
of spare production capacity.
Farmers and suppliers donate or subsidise the ingredients, packaging and delivery of the products, and food manufacturers produce these key staple products
using spare production capacity.
Global oil supply to lag demand after 2020 unless new investments are approved soon New five - year market forecast points to a tight global oil market,
with spare production capacity in 2022 falling to its lowest share since 2008 6 March 2017