Little room to up world oil output in a crisis: EIA - Yahoo! News

WASHINGTON (Reuters) - There is little room to boost world oil production if global supplies are disrupted from instability in major oil producing nations or from natural disasters, and this situation will help keep crude prices high through 2007, the U.S. Energy Information Administration said on Tuesday.

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"The prospects for significant improvement in the world petroleum supply and demand balance appear to be fading," the EIA said in its new monthly energy forecast.

"Steady and continued growth in world oil demand will likely combine with only modest increases in world oil production capacity leaving little room to increase production in the event of geopolitical instability," the agency said.