Oil Demand May Be Victim of Its Own Success

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"Looking at the first six months of 2008, we have seen the most volatile period in the history of oil markets," said Charles Perry, president of Perry Management, an energy-consulting firm.

Oil finished the first half of the year nearly 46% higher, and analysts say that while prices may continue to reach fresh record levels, demand could eventually become a victim of its own success -- putting a cap on price gains for the rest of 2008.

That assessment seems to fit most of the energy market.

"Looking at the first six months of 2008, we have seen the most volatile period in the history of oil markets," said Charles Perry, president of Perry Management, an energy-consulting firm.

"I do not think we have ever before had a six-month period like this when so many things that impact oil prices came together at the same time," he said. "These changes will have a continuing massive impact on the world economies."

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