Peter McGuire, CEO of XM Australia said that the US President Donald Trump is keen on advancing the Keystone Pipeline project to boost domestic oil production.
Crude oil prices may see further weakness, with a potential decline to $68-69 per barrel, according to Peter McGuire, CEO of XM Australia.
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“I would not be surprised if crude takes a bit further softness,” he said adding that US President Donald Trump is keen on advancing the Keystone Pipeline project to boost domestic oil production.
“President Trump wants to also get that Keystone Pipeline, he wants to get that now, and I assume his interactions with the energy market is he just wants to pump crude and turn the US into an economic powerhouse as far as energy,” he stated
Crude oil prices have been gaining for the second consecutive session after a 2.7% drop on February 21. Brent crude is now trading above $75 per barrel, supported by several global factors.
US Sanctions on Iran: The US is planning new sanctions on Iranian oil, which could reduce supply and push prices higher.
Russia-Ukraine Tensions:
The European Union will hold an emergency summit on March 6 to discuss support for Ukraine, while the US is engaging in direct talks with Russia. This geopolitical uncertainty is impacting oil prices.
OPEC+ Production Cuts: The Organisation of the Petroleum Exporting Countries (OPEC) and its allies have been limiting oil production for the past two years. Their March meeting will determine if they continue cuts or increase production in April.
US Oil Production Growth: The US is steadily increasing oil production, currently at 13.1 million barrels per day, with a target of 13.6 million barrels this year.
Trump’s Energy Policies: President Trump is pushing for the Keystone Pipeline, aiming to expand domestic oil supply and strengthen the US energy sector.
Economic Reports and Market Uncertainty: The upcoming US personal consumer expenditure report and multiple speeches from Federal Reserve officials this week could impact inflation and interest rate expectations, influencing oil prices.
Source: CNBCTV18