The US is producing record amounts of oil, and there鈥檚 plenty of supply out of OPEC and Russia. But there鈥檚 not enough demand from developing economies 鈥� think China and India 鈥� to consume all the oil that鈥檚 being supplied. A global recession has left Asian demand weaker than expected, and governments are slashing fuel subsidies across Asia. That drives up the cost of gasoline, diesel, and other everyday fuels, further dampening demand in a region that will largely determine the future of global oil markets.
It鈥檚 not just Asia, though. Austerity measures and decreased consumption across Europe are curbing oil demand throughout that continent, too.
