May 12, 2006 3:03PM 

# Caution: Supply and Demand at Work 

By [Jerry Taylor](https://www.cato.org/people/jerry-taylor) 

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According to a [report ](http://online.wsj.com/article/SB114743124672351221.html)released yesterday by the [International Energy Agency](http://www.oilmarketreport.org/), high oil prices are forcing analysts to make sweeping cuts in their forecasts regarding energy demand and substantially revise upward their forecasts regarding energy supply. Apparently, producers and consumers aren’t the mindless economic zombies that politicians would have us believe.

Who knew this crazy invisible hand thing might be legit?

##### Related Tags 

[Energy and Environment](https://www.cato.org/research/energy-environment) 

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