• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 2 hours Iran Vows Major War Even If US Conducts "Limited Strikes"
  • 5 hours Shale profitability
  • 5 hours When Trying To Be Objective About Ethanol, Don't Include Big Oil Lies To Balance The Argument
  • 7 hours Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 12 hours A little something for all you Offshore swabbies
  • 15 hours New designs will reduce transport fuels consumption
  • 27 mins Memorize date 05/15/2018 cause Huawei ban is the most important single event in world history after 9/11/2001.
  • 21 mins Europe: The Cracks Are Beginning To Show
  • 12 hours Let's shut down dissent like The Conversation in Australia
  • 6 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 15 mins LA Times: Vote Trump out in 2020 to Prevent Climate Apocalypse
  • 16 hours Democrats and Gun Views
  • 3 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
  • 13 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Could Trump’s Victory Render OPEC’s Output Deal Irrelevant?

As if OPEC had an easy job to do in trying to get its own 14 members on the same page about its policies, another major unknown entered the global oil supply equation – potentially making the cartel’s short-term decisions irrelevant -- after Donald Trump won the U.S. presidential election.

The surprise Trump victory and his still unclear stances on many issues -including the Middle East and protectionist policies - are currently leaving the oil observers guessing what a Trump presidency would mean for the crude oil prices and for OPEC’s policies and relevance as a factor in the global oil supply and prices.

Even if in three weeks’ time OPEC manages to clinch a deal on limiting production, oil prices will not “go up much more than the current levels,” an OPEC source told Reuters on Wednesday.

So OPEC’s possible deal might not be able to prop crude prices up, at least not as much as the cartel had initially hoped for when it (surprisingly) agreed in late September to work toward an agreement to ‘stabilize’ the oil market.

OPEC also has another major Trump-related factor to consider in its efforts to reach a deal: the president-elect’s promise to open onshore and offshore leasing on federal lands, eliminate moratorium on coal leasing, and open shale energy deposits. If Trump stays true to his plans and the U.S. were to really boost its oil production, any OPEC deals may become irrelevant and will put further pressure on OPEC economies whose heavily-oil-dependent budgets are strained even now with the persisting low crude oil prices.

Then there is Trump’s criticism toward the nuclear deal the western nations had struck with Iran, just at the moment in which oil majors started to return investing in the Middle East nation and OPEC heavyweight.

The greater uncertainty for the oil market with a Trump win could further make crude prices more volatile and urge OPEC to pull off a deal on a production curb/freeze at the end of November in its bid to not only stabilize but also lift prices. The questions are, first, how motivated OPEC would be to clinch a deal, and second, would it matter at all.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Bob on November 09 2016 said:
    "The nation’s oil industry is buzzing with speculation that Oklahoman and former Enid area oil tycoon Harold Hamm will become the next energy secretary under President-Elect Donald Trump" ENID.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play