World Now Facing Oil Glut?

An oil glut is coming. That’s right, a glut, way too much oil — and the bold prediction is being made by one of the energy industry’s top consultancies.

Even more bold is the prediction’s timing, just as the benchmark price of oil is on the verge of cracking $60 (U.S.) a barrel and futures contracts suggest oil will remain higher than $55 for the rest of the decade.

Cambridge Energy Research Associates Inc., based near Boston, is skeptical, and yesterday released highlights of a report that concludes the world’s capacity to produce oil will likely easily exceed the world’s voracious demand for the product that fuels cars, ships and planes.
The Globe and Mail