THEY STILL HAVEN'T REPEALED THE LAW OF SUPPLY AND DEMAND:

New worry for OPEC: Oversupply (Jad Mouawad, December 7, 2004, The New York Times)

Oil prices have been at record highs this year, with money gushing into the coffers of oil producers. And as leaders of the Organization of Petroleum Exporting Countries leaders head into a final meeting this year, the topic on their minds and on Friday's agenda is whether there will be too much oil next year.

After hitting a record of more than $55 a barrel in October, oil prices in New York have fallen significantly. Crude oil for January delivery rose 44 cents to $42.98 a barrel Monday on the New York Mercantile Exchange.

Because of OPEC's efforts, there is now more oil on the market than is needed. With the group's production at its highest in 25 years, some producers fear oil prices will tumble as demand slows next year on high prices and a usual seasonal brake in the second quarter. OPEC might be tempted to act preemptively and reduce output.

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A rare look at the U.S. strategic oil reserves (Simon Romero, December 7, 2004, The New York Times)

A swamp near here is one of the most secretive places in America. There are no signs, just a 500-acre complex protected at all times by 30 armed guards in combat fatigues patrolling in sport utility vehicles.

This is part of the world's largest and most expensive filling station, the U.S. Strategic Petroleum Reserve, where a large portion of the government's nearly 700 million barrels of oil are stored in underground salt shafts that are supposed to be stable for the next thousand years or so.

Security at the complex has improved in the past three years. Visitors are required to be U.S. citizens, a rule waived recently when technicians from Russia and India toured the site as part of studies toward creating their own reserves.

American taxpayers have invested some $20 billion to build and stock this reserve - and three others in hidden locations - since it was created in 1975 in response to the Arab oil embargo. And now, after 29 years, it is finally about to be filled up to the brim for the first time.