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Originally Posted by Butterfly  The growing supply of oil (note, it doesn't say rate) match growing demand. Is demand served by supply ? yes, is demand growing faster than supply, probably, but as long as supply serves demand, everything is fine. |
Not really, demand will always equal supply because the price of the commodity adjusts automatically to keep the two in balance (The famous economics 101 you like referring to). So regardless of how much (or little) oil is produced, supply will serve demand (as you put it), and according to your logic, "everything is fine".
Which I think is over-simplifying the mechanisms at work to the extent where it doesn't really tell you anything.