OPEC's job of trying to prop up oil prices has just got much harder. With Donald Trump winning the U.S. presidential election, the 14-country oil-producing cartel may have to battle a sourer outlook for the global economy and weaker demand for crude.
The conventional wisdom is that active investors and market participants prefer Hillary Clinton over Donald Trump to maintain the seven-year stock market advance that began in 2008 and took out prior highs in 2013. According to a new election eve survey – that is only partially true.
OPEC says that next year will be a turning point for crude oil toward a more balanced market and we will be at a turning point for the world as the United States elects a new President. As OPEC raises its demand forecast, oil starts to price in a Hillary Clinton presidency that will lead to more regulation and ultimately higher prices.
Ready or not, here they come.
Only four months remain before we find out who the next presidential nominees will be and a mere eight months before we elect one of them to lead the world’s largest economy.
The Pain is Spain will not let Brent crude oil prices gain. Brent crude prices hit the lowest level since 2004 as uncertainty over Spain’s election is raising further concerns about European and global demand. Crude prices continue to fall as rig counts rise and demand expectations fall.