Neither candidate is expected to win an absolute victory for the energy market, with Republican Donald Trump re-elected as President of the United States or Democrat Joe Biden winning the election. What is good for the energy sector – including oil producers – is not necessarily good for oil prices.
President and Chief Executive Officer of Quantum Gas and Power Services, Beth Seawell, said, “As promised in 2016, President Trump has loosened expensive regulations in the energy sector, making the United States independent for the first time in decades has gone.” Inc. “This abundance of supply has made retail energy prices much more stable over the last 3 years, which allows the average person to take advantage of reasonably priced energy for their cars and homes.”
On the New York Mercantile Exchange, front-month prices for US benchmark West Texas Intermediate crude declined more than 38% year-to-date compared to Tuesday, while global benchmark Brent crude declined nearly 40%, Danado Jones. Market wise data. On Tuesday, prices focused on expectations that the Organization of Petroleum Exporting Countries and their allies, together known as OPEC +, may postpone output curves as they take effect at the beginning of the new year. December WTI Contract CLZ20,
Rose 85 cents, or 2.3%, to settle at $ 37.66 a barrel and December Brent BRNF21,
Settled at $ 39.71, up 74 cents, or 1.9%.
However, the election is high on the minds of businessmen, although it is unclear when the official presidential winner will be announced.
“A Trump victory would mean issuing permits for drilling on federal lands” [and] Support for additional midstream infrastructure “said Stewart Gluckman, energy equity analyst at CFRA Research in New York. Trump is unlikely to make any changes in policy regarding Iran, which will” keep incremental Iranian barrels off the world market, And “helps protect the current supply from malfunction.
Read more: Here’s how the US presidential election can shake up the oil market
See more: Why a biden presidency can lead to high gasoline prices
In the long run, Trump’s support for the supply of crude oil in this country could contribute to a relatively high supply, “keeping consumer prices low.”
Although the US is a net exporter of crude and refined products, the lower oil price helps consumers, but is “not necessarily good for the economy as a whole.”
Meanwhile, if Biden becomes president, it could lead to “possible completion of new drilling permits on federal land,” Glackman said. However, many firms have already created a “war chest of such permits”, so any new legislation like this “probably only has its real teeth by 2024.”
Read: Why gold will be the ultimate winner of the US presidential election
Under Biden, Glackman also expects “more rigorous application of laws on the books regarding environmental review of midstream projects,” more court challenges and project deadlines could be delayed. Glickman does not expect Biden to ban faking because he will “destroy the unconventional oil and gas business in America and kill jobs in many states.”
It’s unclear what Biden would do about the epidemic, but energy economist James Williams of WTRG Economics said he would likely impose more trade-offs. He said that fuel consumption would come down and pressure on prices would increase.
Glickman said Biden could decide to “revive” the Joint Nuclear Plan, also known as the Iran Nuclear Agreement, which Trump withdrew. If the US joins the deal, Iranian oil can bring back the barrel and put more pressure on crude oil prices in the short term.
In the long run, Glickman policies that discourage US oil and natural-gas investment “set the stage for time problems – supply shortages occurring before renewables have been able to take substantial market share.” “
Quantum Gas and Power Services’ Sewell reported that none of the 2020 candidates are distinguishing between natural gas versus crude oil, but rather “dumping them into a bucket called fossil fuel.”
Front-month natural-gas futures NGZ20,
On Tuesday, it fell 5.7% to settle at $ 3.059 per million British thermal units. Prices were around 40% till date.
If Democrats win and ban drilling leaks and shut down on federal lands, “it becomes a pure example of what I call Economy 101: Supply and Demand,” Sewell said. “Supply decreases when demand decreases, and there is only one way that prices will increase!”