Republican candidate Donald Trump winning the US election may force OPEC to increase crude production to maintain its market share, according to S&P Global Platts.
“Trump winning the election will put pressure back on OPEC to maintain its market share strategy because the US shale production may rise under this leadership,” Dave Ernsberger, global head of energy, S&P Global Platts, told Arabian Business on Wednesday.
Asked if oil prices will slide, Ernsberger said the market will face a dichotomy of rising Shale production and growing geopolitical concern.
“Trump win could mean lower oil prices because he
is very pro-US production. The expectation will be that US [shale] production
will rise faster under his leadership rather than under Clinton administration,” he said, speaking before Trump was declared US President-elect today.
“From the flip side he is extremely disruptive for geopolitics globally and he sort of waits for people to find new ways for national security, including oil security which could lead to higher oil prices," he added.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $43.42 a barrel, down $1.56 in the Globex electronic session.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.