As markets adapt to Donald Trump’s shock presidential victory, one key area of interest is the consequences for the global oil markets. Natixis’ chief oil analyst, Abhishek Deshpande, offered his views on the president-elect’s potential oil market impact to Bloomberg TV.
“Given Trump is pro-fossil fuels, and pro-U.S. fossil fuels, in particular, it is likely he will expand both the upstream and midstream sectors,” says Deshpande. “The U.S., however will depend on external crude, so if Trump did push to increase U.S. production, this will only put further pressure on oil prices to begin with.”
What’s more, Trump’s victory may only intensify the Organisation of Petroleum Exporting Countries’ (OPEC) struggle to finalise a deal on production cuts. As a result, Deshpande believes oil prices could fall close to US$40 – if not lower – especially if a deal is not reached with non-OPEC countries by the end of November.
To watch the full interview, please click here.