The demand for crude oil next year will increase partly due to next year Beijing 2008 Olympics. Increase in demand for oil will jack up the prices as simple economics law of demand and supply kicks into action.

Demand could increase by as much as 5.6 percent next year, according to some analysts, partly on extra use connected to the Beijing Summer Olympics, while more immediately Tokyo Electric Power (TYO: 9501) announced that it will double its oil purchases to around 180,000 barrels per day in order to compensate for lost power generation from its earthquake-damaged nuclear plant.

Consumers have to burn a bigger hole in their pockets.

Via Oil Marketer