The recent frenzy in the oil market is unprecedented in modern history says Norway’s broking house Lorentzen & Stemoco. When prices have risen above US$45/b (Brent) in the past, this has been due to an imminent threat or outbreak of war. But the recent oil price rally has been driven by strong oil demand and not least by the perception that the world oil production reserve base is too small in light of the risk of further disruptions. This latter fear factor has been amplified by the problems in Venezuela, Nigeria and Iraq and the continued risk of terrorist attacks. For years there has been three main doctrines in the market. The first is that high prices will cause economic growth to stall and thus affect demand negatively.