Pulitzer Prize-winning U.S. oil historian, Daniel Yergin, on Wednesday, said OPEC’s job of trying to prop up oil prices just got harder with Donald Trump’s win in the U.S. presidential election.
Yergin told the media that the 14-country oil-producing cartel may have to battle a sourer outlook for the global economy and weaker demand for crude.
OPEC’s internal dynamic could change, with Trump promising to tighten policies on Iran just as oil companies begin slowly to return to the Islamic Republic, he added.
He said, “buckle up your seat belts for a more turbulent and uncertain global economy ahead.”
Yergin, who is also the Vice Chairman of IHS Markit Think Tank, said, “the outcome of the U.S. election has added to the challenges of oil exporters because it will lead to weaker economic growth in an already fragile global economy.
“And that means additional pressure on oil demand.”
Meanwhile, OPEC will meet on Nov. 30 in an effort to curtail output and reduce the global oil glut that has seen prices more than halve since 2014.
OPEC sources said they expected oil to remain weak in the days and weeks ahead due to worries about the global economy and uncertainty about Trump’s policies for the Middle East.
Trump has promised to double U.S. economic growth but also pledged protectionist trade policies.