Spikes and troughs
Only real supply-side intervention has stopped oil-price volatility. But those days are gone, argues Bob McNally's new book
If you need an example of a market best not left to the invisible hand, oil is it. Its price gyrations can destroy producers or hamstring consumer economies. And yet "extreme volatility… is an intrinsic feature of the oil industry," writes Bob McNally in a new book.* Everyone wants price stability—the foundation on which to make investment decisions and plan economies. But the market, says McNally, president of the Rapidan Group and a former energy advisor to the White House, isn't about to yield it. Forget the deal between Opec and non-Opec producers—Saudi Arabia's recent decision to cut oil output is not going to bring the prolonged period of calm everyone seeks. Since 2014, notes McNally,
Also in this section
19 March 2026
The regional crisis highlights the undervalued role of fixed pipelines in the age of tanker flexibility
18 March 2026
Rising LNG exports and AI-driven power demand have raised concerns that US gas prices could climb sharply, but analysts say abundant shale supply and continued productivity gains should keep Henry Hub within a range that preserves the competitiveness of US LNG
18 March 2026
Risks of shortages in oil products may cause world leaders to panic and make mistakes instead of letting the market do what it does best
17 March 2026
The crisis in the Middle East has put LNG’s ability to offer security and flexibility under uncomfortable scrutiny
