Citi: Trump’s Victory Could Exert Downward Pressure on Oil Through 2025
SEATTLE (Oil Monster): According to Citi's most recent research study, which was released on Wednesday, the U.S. President-elect Donald Trump's second term may put downward pressure on oil prices through 2025. It predicts that the price of Brent crude oil will average $60 per barrel, primarily due to increased supply and expected trade tariffs.
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The bank claims that the producer group may be forced to taper production cutbacks more quickly as a result of Trump's influence over the Organization of the Petroleum Exporting Countries and its allies (OPEC+). Geopolitical tensions may subside as a result of Trump's actions, which could allow some oil on water to return to the market. The industry is poised to benefit from Trump's policy initiatives. He will probably make an announcement on possible tax breaks for large-scale exploration and production investments.
Trump's policies will probably continue to have a mixed impact on global economic development, according to Citi. China and Europe will probably suffer as a result. This would significantly slow the increase of the world's oil demand. It predicts no immediate effect on the actual oil markets, though.
The Brent crude oil futures and the West Texas Intermediate crude (WTI) prices in the United States both saw drops after Trump's triumph.