The recent US presidential election has sparked debate on how it will impact oil production and prices. S&P Global Commodity Insights suggests that while the Trump administration may roll back environmental regulations and expand oil leases, significant production increases are unlikely in the short term.
According to Payam Hashempour, a senior analyst at S&P Global Commodity Insights, US production is driven by market forces rather than politics. The new administration’s policies may influence sanctions on other oil-producing countries like Iran and Venezuela, potentially leading to tighter oil supplies or higher prices.
However, US producers are more focused on maximizing returns from existing fields, rather than expanding production. This approach is expected to lead to a supply glut in the mid-term, putting downward pressure on prices.
Meanwhile, other sectors such as energy commodities, power generation, and critical minerals may see significant impacts from the Trump administration’s policies. The widespread adoption of electric vehicles is also accelerating demand for EV charging infrastructure, highlighting the need for robust IT/OT infrastructure.
As investors continue to weigh in on market trends, S&P Global Commodity Insights will provide regular updates on oil prices and other energy commodities.
Source: https://www.spglobal.com/en/research-insights/market-insights/daily-update-november-12-2024