Oil Steadies Above $71

LONDON (Reuters) - Oil steadied above $71 a barrel on Monday after gunmen in Nigeria overran an oilfield station on Sunday, renewing concern about supplies from the world's eighth largest oil exporter.

So here we go with more potential supply disruptions, folks.

Violence in Nigeria has also supported prices this year. About 600,000 bpd of the country's output is shut down because of militant attacks. A union leader said this week's general strike will halt oil exports.

The supply risks come as world oil demand is growing faster than expected according to the International Energy Agency, an adviser to 26 industrialised countries.

So, despite the increasing prices, demand continues to grow. So, if demand continues to grow, we have to increase supply, or else see continuing increases in price. It all boils down to economics, and how high we want to chase ourselves up the money tree before we allow more oil drilling and refineries to be built in the U.S. The problem is, you have, according to what I have read on the sublject, about a 10-year lead time on those kinds of projects.

But not to worry, I'm sure Al Gore has all the answers...