Oil Supply vs. Prices

World oil production has generally increased since 1996 to more than 80 million barrels a day, from 63 million. When demand doesn’t follow the same trajectory, prices are affected; that is the reason for the most recent spike in 2011 and this year’s steep drop.

When world oil production, which has generally increased since 1996, doesn’t follow the same trajectory as demand, prices are affected; that’s the reason for this year’s steep drop.