In this paper, we try to assess the potential for future developments concerning the European and the world markets for olive oil, taking into account the present state of the European Agricultural policy, whereby the market for olive oil is a controlled market characterised by subsidies to producers and consumers. So far, the world market has steadily expanded, within the EU as well as outside the EU, and especially in developed countries outside the EU. We beleive that, although there is a risk for some oversupply, the prospects for increasing demand are quite good.