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Near the top of the peak and all the way down the back side of the curve prices will be most sensitive to demand. As the article says, even slight reductions in demand, or perhaps more accurrately, reduction in rate of increase in demand, will effect prices.
This is why the big five are not investing significantly more in E & P (Exploration and Production) than they were at $26/bbl.
It is also important to know that the "Big 5" of Shell, Exxon-Mobil, BP, Chevron-Texaco, and Conoco-Phillips are not so very big in the grand scheme of things. Most of the World's oil and gas reserves and production capacity belong to national oil companies like Saudi Aramco, PDVSA, Statoil, Petronas, ADNOC, etc.
On the upside of the curve production had the dominate influence on price. I think we are seeing the beginning of the domination of demand on price that is characteristic of the downside of the curve.
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