The Economist's long struggle with the oil price

为何油价没失控

Money Talks from The Economist

2026-07-09

34 分钟
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Predictions are a feature of The Economist. The inevitable result is that we drop the occasional clanger. And our big mistakes, it seems, have often had something to do with oil. So why is the black stuff our bête noire? Guests and hosts: Ethan Wu, co-host of “Money Talks”Mike Bird, co-host of “Money Talks”Alice Fulwood, co-host of “Money Talks”Matthieu Favas, The Economist's commodities editor Topics covered: OilIran The Strait of Hormuz Transcripts of our podcasts are available via economist.com/podcasts.
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  • The Economist.

  • On the 28th of February, the US and Israel launched a massive assault against Iran.

  • In response, Iran closed the Strait of Hormuz,

  • cutting off about 20% of global oil supply.

  • As the world scrambled to buy up what oil it could get its hands on,

  • the price climbed.

  • US oil prices have topped $100 a barrel for the first time since 2022

  • amid the escalating conflict in the Middle East.

  • But even as prices soared well over $100 a barrel in late April,

  • The Economist said that the oil market was in Lalaland.

  • We didn't just say it, we wrote it on the cover,

  • arguing that prices weren't high enough.

  • That prediction, as it turns out, went about as well as the war did.

  • Oil prices extended declines on Wednesday and dropped to two-week lows.

  • The sell-off came after a Pakistani source said the US and Iran were close to an initial peace deal.

  • And today, even as tensions ramp up again in the Strait,

  • Brent crude is not much higher than it was before the war.

  • So how did we get our prediction so wrong?

  • You're listening to Money Talks from The Economist,

  • our weekly podcast on the markets, the economy, and the world of business.