US President Donald Trump’s administration has implemented new policies aimed at increasing oil and gas production, including a National Energy Emergency declaration and plans to withdraw from the Paris climate agreement. Trump’s actions, such as lifting drilling bans and pushing for the use of Alaska’s natural resources, aim to lower oil prices. However, experts warn that these regulatory changes may have limited short-term impact on the global oil market.
Despite Trump’s aggressive approach, market dynamics, such as uncertainty surrounding relations with oil suppliers like Russia, Iran, and Venezuela, could hinder any significant price drops. For example, sanctions on Russian oil companies have led to higher prices, and lifting sanctions on Venezuela or Iran could drive prices up. According to experts like Jorge Leon from Rystad Energy, the true effects of deregulation will likely take time to materialize.
Additionally, the continuation of sanctions on Russia and Iran remains crucial in determining future price movements. The impact of Trump’s policies, such as his push for increased production and tariffs, may bring more volatility, but the influence on the oil sector is seen as minimal, with major players like ExxonMobil and Chevron focusing on long-term stability rather than reacting to short-term policy changes.
