Rising supplies could crimp Big Oil’s profits during 2007

After a bonanza in 2006, Big Oil is poised for a slightly less big year in 2007, as expected slowing U.S. economic growth and an expanding global supply may help keep a lid on prices.

Oil prices will continue to hover at historically high levels, analysts say, because of strong demand in China and the Middle East, efforts by OPEC to reduce output and market-rattling instability in countries such as Nigeria and Iraq. Barring major supply snags, however, transportation, manufacturing and home-heating fuels should be less expensive–thanks to an anticipated production spurt from non-OPEC countries and a calmer outlook for the refining sector.
Chicago Tribune