Citi outline bearish and bullish risks for oil under Trump

News

Reuters have the piece from a Citi report on politics / oil.

In brief:

Trump presidency could be net bearish for oil prices

  • combination of factors including tariffs and oil-friendly policies, and pushing the Organization of the Petroleum Exporting Countries and allies (OPEC+) to release more oil into the market

The main bullish risk for oil markets under a Trump presidency would be would be pressure on Iran, though this could have a limited impact.

  • a “maximum pressure” campaign on Iran, the market could see a 500-900 thousand barrel per day impact on Iranian oil exports

More immediately, Citi enumerate known risks:

  • hurricane season is far from over
  • Mideast tensions remain high … pressure has also been mounting for a push for a ceasefire, which could conceivably be forthcoming this summer

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