Oil's Perfect Storm May Finally Blow Over

UK Daily Telegraph --The perfect storm that has swept oil prices to $132 a barrel may subside over the coming months as rising crude supply from unexpected corners of the world finally comes on stream, just as the global economic downturn begins to bite.

The forces behind the meteoric price rise this spring are slowly receding. Nigeria has boosted output by 200,000 barrels a day (BPD) this month, making up most of the shortfall caused by rebel attacks on pipelines in April.

The Geneva consultancy PetroLogistics says Iraq has added 300,000 BPD to a total of 2.57m as security is beefed up in the northern Kirkuk region. "There is a strong rebound in supply," said the group's president Conrad Gerber.

Saudi Arabia is adding 300,000 BPD to the market in response to a personal plea from President George Bush, and to placate angry Democrats on Capitol Hill - even though Riyadh insists that there are abundant supplies for sale.