In a world economy where there is an increased demand for oil, are the oil companies restricting supply to inflate prices, or are they already operating at full capacity?
The supply is resitricted. Gordon Brown was up here around 4 weeks ago in meetings with the Companies that pump the oil in an bid to get them to meet the demands. The Companies said they were willing to do that on the condition that the taxes they are charged by the Government was reduced we are charged extortionately at the moment), Gordon said he would not lower the tax, so he was promptly told that the amount of oil pumped would not be increased.