No doubt, the new head of the White House will review a lot of economic and political aspects of society. The cabinet reshuffle in the top global economy is sure to make an impact on both foreign and domestic policies. Thus, other countries and international alliances will have to adjust their policies to a new stance of the US administration.
The oil market is no exception as it depends a lot on the US President’s rhetoric. The inauguration of Joe Biden as President is certainly the tipping point for the cartel. In the meantime, experts are trying to figure out whether the new US leader will push oil prices up or down.
His foreign policy is supposed to soften sanctions, including the ones imposed on Iran and Venezuela. This move will flood the saturated oil market with more oil supplies from new sources, thus bringing down oil prices. Most experts share this outlook, predicting a slump in oil prices. However, there is an opposite viewpoint on the oil prospects.
“A Biden Presidency makes it more likely that the larger members of OPEC+ would take a more conservative approach and, depending on whether oil prices remain in the $30 range, could lead them to cut production further come January,” Citigroup oil strategist Edward Morse states his forecast. The President-elect will make Russia and Saudi Arabia closer allies who are more interested in working together, the expert supports his point. They will advocate for keeping oil inventories at low levels until OPEC decided to scale up oil production cuts.
