OPEC’s job just became tougher with Trump win
* Outlook for global economy, oil demand darkens
* US oil industry seen benefiting from Trump victory
* Revival of Iran oil investments uncertain due to Trump
OPEC’s job of trying to prop up oil prices has just got much harder.
With Donald Trump winning the US presidential election, the 14-country oil-producing cartel may have to battle a sourer outlook for the global economy and weaker demand for crude.
It also faces the prospect of increased US oil output – a major bugbear for the Organization of the Petroleum Exporting Countries – given Trump’s pledge to open all federal land and waters for fossil fuel exploration.
OPEC’s internal dynamic could change, with Trump promising to tighten policies on Iran just as oil companies begin slowly to return to the Islamic Republic.
“Buckle up your seatbelts for a more turbulent and uncertain global economy that is ahead,” Pulitzer Prize-winning US oil historian Daniel Yergin, vice-chairman of the IHS Markit think tank, told Reuters.
“The outcome of the US election adds to the challenges for the oil exporters because it will likely lead to weaker economic growth in an already fragile global economy. And that means additional pressure on oil demand,” Yergin said.
Oil prices fell almost four percent early on Wednesday but recovered to trade up slightly at around $46 per barrel by 1055 GMT.
OPEC will meet on November 30 in an effort to curtail output and reduce the global oil glut that has seen prices more than halve since 2014.