The problem with liquid oils isn't that they stop lubricating — it's that they attract everything they come into contact with. Dust and dirt stick to oil inside the pins and rollers, forming an abrasive paste that grinds away at your chain from the inside. You can clean it off, but it comes straight back the next ride.
There's a second problem that gets less attention: centrifugation. As your chain accelerates — sprinting, climbing, high cadence — centrifugal force pushes liquid oil outward, away from the pin-roller interface where lubrication actually happens. It migrates to the outer plates and sprocket teeth, where it does nothing useful and picks up grit. The harder you ride, the faster it moves to exactly the wrong place.
Graphite doesn't move. It bonds to the metal and stays at the contact points regardless of chain speed. So at the moment you're generating the most power — and therefore the most friction — the lubrication is still there. With oil, it increasingly isn't.