[ruilov]

Normally people use the term "demand" to mean a curve, which is a function of price. In an efficient market (a good approximation for the oil market), the price solves for the equilibrium between supply and demand. The quote in the article, "demand will peak before supply", is meaningless. It's not wrong, it's just not saying anything.

The fact that the price has come down in the past couple of years means that either demand has shifted down (that is, keeping the price constant, people demand less) or that supply has shifted up.

On the demand side, it's unclear to me, I'd appreciate any pointers others would have. While advanced countries get more efficient with their use of energy, emerging economies are increasing their demand as more people escape poverty.

What is clear is that the supply curve has shifted up. Both because of technological improvements in the U.S. in fracking, and due to political improvements in countries like Iran, Iraq and Nigeria.

[wiz21c]

Oil demand in relation with oil price...

http://energie-climat.obspm.fr/local/cache-vignettes/L500xH3...