Todd Royal / OilPrice
Oil markets are looking particularly bearish this week, with WTI once again below $50, the OPEC cuts in jeopardy over Iran and Iraq ramping up production, the second U.S. shale revolution underway, and an overwhelming U.S. supply glut which shows no signs of easing. In this environment, signs that President Donald Trump’s energy policies could further disrupt markets are worrying for the industry.
With his pro-drilling nominations for the Departments of State, Energy, Interior, and EPA, the American renaissance of oil and natural gas production is set to skyrocket, which will cause prices of WTI and Brent to move lower in the foreseeable future. Some of the geopolitical conflicts that could offset this downward pressure are: 1) Rising tensions in East Asia involving the U.S., China, South Korea, and Japan, 2) Iran’s aggressive stances towards the west, 3) Russia’s movements against NATO in Ukraine, and 4) the possible collapse of Venezuela.