Oil Price Run-Up Raises Questions on Supplies

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Byline: Peter Enav

TAIPEI, Taiwan (AP) -- Perhaps the biggest reason that oil costs nearly US$ 100 a barrel can be found in places like China, where roads that were full of bicycles 15 years ago are now choking with cars and trucks. Or in India, where sales of diesel-powered generators have soared as people try to avoid frequent power outages.

The rapid growth in China, India and other emerging economies has been fed by crude oil, but this rising demand for fossil fuels may finally be pushing the limits of supply. If basic economics is any guide, that could also mean US$100 is just the beginning of far higher prices.

The International Energy Agency warned earlier this month that growing global demand, particularly from China and India, could create a supply …