RE:The Trump effectThe other thing that is going to happen is more conflict... already seen a couple oil wells on fire.. a tanker hit ... really surprised NK has not launced a rocket yet... so this could also keep oil moving..
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Anschutz wrote: Something I see no one in the media or investment community talking about is the influence Trump has had over the price of oil over the last four years. With Trump now effectively removed from office, who can we expect to tweet that the price of oil is too high or to call on MBS to increase oil production. Answer... "no one".
Saudi's have made it clear they want the price of oil higher. Russia and the other despot regimes want the price of oil higher. Biden and democrats want the price of oil higher to increase the amount of taxes collected. Environmental groups, organizations and businesses want the price of oil higher to support the illusion that green tech is economical.
With Trump the key influencer now removed and many more powers now pushing for higher prices, it looks to me like the oil price run has just begun. I think we see WTI hit $50 within the next 2 weeks. Followed by a pull back heading into the January OPEC meeting in effort to prevent production increases. The price of oil will then rise and accelerate higher after Biden's inaugeration.
That's how I'm playing it. If you are waiting on the sidelines for a pullback you may get a chance early in the new year. The question I suppose is how much higher will Canadian E&Ps march higher in the next 2 to 3 weeks and will any small pull back in the price of oil have a significant impact on share prices for having waited to buy in.