Oil Prices At Record Highs

Oil prices reached a record $57.50 a barrel with traders worried taht that OPEC's production increase won't live up to demand. A Bloomberg article says, "A 50 percent surge in prices in the past year may hurt the world economy and cap growth in oil use, said Richard Savage, global head of commodities research and strategy at Bank of America in London. OPEC raised its output target to a record 27.5 million barrels a day yesterday and will let inventories rise in the second quarter, when consumption usually drops." "It's an admission that they don't have any spare capacity left," said Simon Wardell of Global Insight. "If they don't let stockpiles rise, they won't be able to cope with demand this year." According to a