Why the laws of economics don't work well with oil
(The Sunday Times) IT’S TOUGH attending dinner parties these days. Until recently, all an economist had to cope with were requests for forecasts on house prices - for each of the neighbourhoods represented at the table. Now things are harder. Every guest has his or her own reason for wanting a forecast of oil and petrol prices. Politicians in America are convinced that the price of petrol will determine which party controls the House of Representatives after the November elections.

Capacity limits to curb oil price fall
(Sydney Morning Herald) THE world should get used to oil prices above $US60 a barrel for at least the next two years due to capacity shortages, said Claude Mandil, the executive director of the International Energy Agency. Speaking from Paris, Mr Mandil told ABC's Inside Business that increased upstream supplies were not expected until at least 2008 and refining capacity would probably not increase until 2010 or 2011.