The recent decrease in crude oil (CL = F, BZ = F) Prices calls concern about its impact on the worldwide markets. Factors such as President Trump's rate announcements and the expected OPEC offerings have contributed to the decline.
HEDGEYE RISK Management Energy analyst Fernando Valle joins catalysts to discuss oil prices against the background of Trump administration and market volatility policy.
Valle says that “without demand” the “OPEC+ increase in supply” mainly floats the fall in raw prices and oil across the board.
Valle also emphasizes the impact of the supply boost. “We are still not in a super -retaining oil market, so it is almost certain to bring in no less than 2.2 million barrels per day, which is slightly more than 2% of the worldwide offer, back in a market that is not very tight to lower prices,” he explains.
Valle also points out how the American energy policy shape the expectations of the oil price.
“I know from our sources in the administration that they want oil to go as far as $ 50, whether it is Brent or WTI, to help considerably with inflation,” Valle adds.
View more catalysts here to view more expert insights and analysis of the latest market promotion.
This post is written by Josh Lynch
