There's a fundamentally different outlook about world oil-demand growth in 2008 between OPEC and the International Energy Agency (IEA), the principal energy-forecasting organization of non-OPEC countries. And, depending on which organization is correct in its projections, the market could see oil prices next year either moving in a steady range of $65 to $75 per barrel or soaring to between $80 and $90. This is the assessment of Bernard J. Picchi, senior managing director and energy equity-research analyst for Wall Street Access, a New York-based registered broker-dealer. "Not surprisingly, since this year is more than half-over, there's little difference between the two organizations' outlooks for 2007," says Picchi. He notes the IEA and OPEC both peg global oil demand this year at 85.6 million barrels per day. However, there's a big difference in the estimates of the two organizations when it comes to 2008 world demand. And it's a perceptual difference that will shape OPEC (i.e. Saudi) production policy for the remainder of this year-a period of inventory building in advance of peak winter demand, the analyst contends. For more on this, see the September issue of Oil and Gas Investor. For a subscription, call 713-260-6441.

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