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Citi Predicts Trump's Victory to Pressure Oil Prices, Brent Crude to Average US$60/bbl Next Yr
Citi forecasted that Donald Trump's US presidency would exert downward pressure on oil prices next year, with Brent oil futures expected to average US$60 per barrel as affected...
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Citi Predicts Trump's Victory to Pressure Oil Prices, Brent Crude to Average US$60/bbl Next Yr
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Citi forecasted that Donald Trump's US presidency would exert downward pressure on oil prices next year, with Brent oil futures expected to average US$60 per barrel as affected by tariffs and increased oil supply.

The broker believed Trump's influence on OPEC+ may prompt a quicker end to production cuts, while alleviating geopolitical tensions and releasing more oil into the market.

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Trump's policies could favor the oil industry through potential tax incentives for exploration and production capital investments and reverse the current administration's increase in royalties, bidding floor, and Federal land leasing costs, the broker said.

However, Trump's policies could also have mixed implications for global economic growth, particularly unfavorable for Europe and China which remain exposed to tariff risks. This could further harm global oil demand growth, posing a downside risk to the broker's current forecast of 900,000 barrels per day for next year.

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