OANDA

Oil is blowing its own "Trump"et this morning.

News   •   Nov 16, 2016 23:29 +08

Please attribute the following commentary to Jeffrey Halley, senior market analyst at OANDA. For direct comment, call Jeffrey at +65 9457 1849 or email jhalley@oanda.com.

Oil is blowing its own "Trump"et this morning.

Having sold off 3% in Asia as the election results rolled in, it found its feet along with other stocks and commodities after a magnanimous victory speech by Mr Trump and a perception that he will cut red tape and taxes.

WTI and Brent both shrugged off yesterday's sell-off to rally to around $46.00 a barrel before easing late in the New York session on slightly higher US EIA crude inventories.

How long the Trump afterglow will last is a matter of conjecture. Less red tape and taxes should theoretically lead to higher oil production in the United States. Not good news for OPEC and non-OPEC members trying to thrash out a production cut. Oil's post election afterglow may turn black gold to fools gold as the street gets back to reality.

-- To interview Jeffrey regarding the upcoming OPEC meeting, please contact illka@pinpointpr.sg