link to worldoil.com:

http://worldoil.com/INFOCENTER/STATISTI ... production

the table on the page shows production for june 2007 against may 2007 against averages for 2006 and 2005. And the numbers show that june production is lower than averages for 2005 and 2006 as well as for may.

Total Supply (world):
83.71 (June 2007)
84.27 (May 2007)
84.69 (Average 2006)
84.16 (Average 2005)

How come production is dropping while prices are so high? Shouldn't market forces "generate" more supply?

Isn't China and India consuming signifficantly more each year? What areas in the world have had to cut back on consumption to leave room for increases in chineese and indian oil consumption?

Interestingly enough I see that my homecountry (Norway) has one of the largest production drops over the period. We were close to 3 mb/d in 2005 and was over 2.5 mb/d in May, but in June we saw only 2.16 mb/d... from almost 3 to slightly above 2 since 2005 to now... thats pretty steep decline.

The figures that you have quoted are different to those stated within the table for total world. Take another look.