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 May 2025
The two Gulf states are combining fossil fuel production with ambitions to become leaders in low-carbon energy
15 May 2025
Financial problems, lack of exploration success and political dogma cause uncertainty across much of the region
14 May 2025
The invisible hand of the market has seen increasing transparency but much more needs to be done to build a better understanding
13 May 2025
A fall in Venezuelan output drives overall production lower, as Saudi Arabia starts to slowly bring more crude to the market
