Bulls in pole position

World oil markets are adjusting to the new reality of lower spare capacity, greater volatility and a higher range of prices. A US dollar crisis, or a slow-down in world demand coinciding with a surge in new supply, could see prices fall substantially. But in all probability - with Chinese expansion continuing relentlessly, Iraq unstable and relations between the US and Iran deteriorating - oil prices will remain strong, argue Roger Diwan and Jamal Qureshi of PFC Energy