Oil Prices Stagnant Amid Global Tensions

Robert Bryce spoke to Robert McNally, founder and president of Rapidan Energy Group, about why oil prices haven't reached $150. McNally served in the White House under George W. Bush as senior director for international energy on the National Security Council. He is also the author of the book Crude Volatility: The History and the Future of Boom-Bust Oil Prices.

McNally explained that market disruptions, such as those caused by conflicts in key oil transit points like the Suez Canal, Persian Gulf, and Strait of Hormuz, have historically led to price spikes. However, he noted that current supply chain issues are not as severe as some previous events. According to McNally, 'the global oil industry has built up a lot of spare capacity' since 2019.

McNally's understanding of past market disruptions and conflicts is helpful for understanding where the oil market is today. He highlighted that current supply chain issues are not as severe as some previous events, stating, 'we've been through this before.' McNally also mentioned that some analysts are predicting a significant price increase due to the ongoing conflict in Ukraine.