Oil markets have declined for the second consecutive day after President Trump’s inauguration, with Brent crude down 0.85% to $79.49 per barrel and WTI crude down 1.5% to $76.68 per barrel.
Commodity experts at Standard Chartered predict that oil prices will remain strong despite the uncertainty surrounding Trump’s policies. They attribute this to several factors, including the removal of more Russian barrels from the market due to sanctions. The sanctions are expected to displace around 900,000 barrels per day, with StanChart estimating a reduction of 500,000 barrels over the next six months.
Other reasons for the strength in oil markets include OPEC+’s adherence to production quotas, robust non-weather-related demand, and lower-than-expected non-OPEC supply growth. Commodity analysts at Standard Chartered also believe that the delayed output increase by OPEC+ until 2025 will help prevent oversupply in 2025.
However, experts warn that Russia may try to circumvent sanctions by using more shadow fleet tankers and ship-to-ship transfers. Despite this uncertainty, StanCharth remains optimistic about the market’s persistence after weather patterns return to seasonal averages.
Source: https://oilprice.com/Latest-Energy-News/World-News/Oil-Analysts-Divided-on-Trumps-Impact-on-Oil-Prices.html