The price of oil rose to $135 a barrel -- up a mere 463% since January 2001. If supply and demand has anything to do with it, prices will rise more. That's because demand is expected to rise 37%, while supply is optimistically forecast to grow half as fast by 2030.

Bloomberg News reports that the International Energy Agency (IEA) -- oil adviser to 27 nations -- is lowering its forecast of 2030's global oil production. Despite, the lower IEA forecast -- based on an analysis of the world's 400 largest oil fields -- it still forecasts an 18% production increase. But others believe -- in the face of a 37% growth in demand -- that oil production will not reach the heights predicted by the IEA's lower forecast.

Meanwhile, short term US supply is down. AFP reports that Wednesday's Department of Energy report showed US crude oil stocks fell in the week ended May 16, by 5.4 million barrels to 320.4 million barrels -- analysts expected a 300,000 barrel increase. Gasoline inventories dropped by 800,000 barrels, to 209.4 million -- a far cry from the expected 250,000 barrel gain.