Oil demand is going up. But supply is probably not  So says the International Energy Agency. Demand is expected to rise by 2% in 2007.

According to Marketwatch: The IEA said "hopes for moderation in crude prices in the short term lie both with OPEC and the U.S. gasoline market."  But, that may be cold comfort. Gasoline demand here is likely to rise through the summer and OPEC has indicated it has no intentions of raising output, especially if the US and other countries continue to invest in biofuels to replace the dwindling oil supply.

If signs point anywhere, it is to $70 plus oil. That could be the last straw for an already tiring US economy.

Douglas A McIntyre