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Trump’s presidency - bullish sign for US oil production

Oil&Gas Materials 11 November 2016 13:05 (UTC +04:00)
Donald Trump’s presidency is a bullish sign for US oil production, which will add to the global supply in 2017.
Trump’s presidency - bullish sign for US oil production

Baku, Azerbaijan, Nov.11

By Leman Zeynalova – Trend:

Donald Trump’s presidency is a bullish sign for US oil production, which will add to the global supply in 2017, Emma Richards, oil and gas analyst with BMI Research told Trend Nov.11.

This can be a drag on the oil market's re-balancing and on prices too, according to the expert.

Regarding the impact of Trump’s energy policy on OPEC oil deal in Vienna Nov.30, Richards said that given the poor relations between Trump and key OPEC players, it also makes a deal in November significantly less likely to happen.

“Any cut from OPEC could be seen as playing into the hands of US and it will be difficult for the countries like Saudi Arabia and Iran to find support [for out cuts] domestically,” she added.

In September, OPEC producers agreed during the informal meeting in Algiers to cut down the oil output to 32.5 million barrels per day (bpd) from current production of 33.24 million bpd.

How much each country will produce is to be decided at the next formal meeting of OPEC in November.

The US held presidential election November 8. Republican presidential nominee Donald Trump won the election.

Given Trump’s pledge to open all federal land and waters for fossil fuel exploration, there are prospects of increased US oil output.

Trump’s energy policy includes the following goals: declare the country’s energy dominance a strategic economic and foreign policy goal; become, and stay, totally independent of any need to import energy; encourage the use of natural gas and other US energy resources that will both reduce emissions and the price of energy and increase its economic output.

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