Expect the unexpected
November has proven to be an action filled month for planet Earth. Donald Trump’s election as the next President of the United States on 8 November stunned the world’s global energy markets and media.
Crude oil prices plunged as much as 4 percent on the day of the surprise victory, with NYMEX WTI contract hitting a 2 month low of US$43/bbl. Analysts cited economic uncertainty and the President-elect’s plans to cut the ‘red-tape’ of the upstream US oil and gas sector.
Nonetheless, the eyes of the energy theater have now firmly turned to Vienna, Austria. On 30 November members of OPEC will meet to potentially finalize an agreement to cut crude output. As it stands, OPEC has ‘talked the talk’. Whether they will ‘walk the walk’ and ratify the proposed production cutback remains a multi-billion dollar question.