Source:
BloombergWTI Spot April 1999-Jan 2005;
EIA Calculations
SThis chart shows the relationship between
crude oil prices and surplus production capacity since 1999, or about the
time we saw the shift in prices up to around $30 per barrel.
SNotice that price rises about$10/barrel as surplus capacity drops from
about 2 million barrels per day to where we were during much of the second
half of 2004 at about 0.5 million barrels per day.
