Oil Holds Drop as Trump Pledges Energy Push, Delays Tariffs

Oil prices have been volatile in recent months, with Brent crude futures reaching a recent high of $93 per barrel. However, oil stocks have not followed suit, with the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) down slightly over the past month. This discrepancy can be attributed to a combination of factors, including the outperformance of oil stocks earlier in the year, expectations for a drop-off in oil prices next year, and concerns about broader economic weakness.



President-elect Donald Trump has pledged to support the domestic production of fossil fuels, vowing to "drill, baby, drill" and fill strategic reserves to the top. However, it remains to be seen how these policies will impact global oil supply and prices. While Trump's energy policies could lead to an increase in U.S. production, OPEC+ nations have shown resistance to his calls to increase production, as seen in their decision to slow a planned increase in production in late 2024.

Trump's delay in implementing tariffs could also have a potential impact on global oil demand and prices. While his policies could lead to a decline in geopolitical tensions, the overall impact on global oil demand and prices is uncertain and may not be significant in the short term.

In conclusion, while Trump's energy policies and delay in implementing tariffs could have some potential impacts on global oil supply and prices, the overall impact is uncertain and may not be significant in the short term. The global oil market is influenced by a multitude of factors, and the impact of any one factor, including Trump's policies, is difficult to predict with certainty. Investors should continue to monitor the situation closely and make informed decisions based on the latest data and expert analysis.