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Oil prices could fall to $50 per barrel as early as May, according to forecasts in Russia. Amid these expectations, US President-elect Donald Trump’s team is preparing large-scale energy initiatives aimed at increasing liquefied natural gas (LNG) exports and oil production. This was reported by Reuters.
Trump’s plans
According to sources, Trump intends to reverse a number of climate initiatives introduced by the Joe Biden administration. Among the key measures:
- Lifting restrictions on the issuance of new LNG export licences.
- Speeding up drilling permits on federal land.
- Resumption of drilling plans on the US shelf.
- Approval of the construction of the Keystone pipeline.
The relevant legislative initiatives are expected to be submitted shortly after the inauguration.
Pessimistic forecasts for Russia
Russian businessman Oleg Deripaska has pointed to possible serious consequences of the new US energy policy for the oil market.
“Good morning, new world. Oil at $50 per barrel by May seems to be everywhere,” Deripaska said in his address.
Such forecasts are a logical extension of Trump’s promises to boost US production of black gold. According to the president-elect, America has the largest oil reserves in the world – more than Saudi Arabia and Russia.
Oil price and geopolitics
Earlier, Trump said that a drop in oil prices to $40 per barrel would be a blow to the Russian economy. “If we lower the price of oil, Putin won’t be able to continue the war,” he said in his campaign speeches.
Experts expect that increased competition in the global energy market may put additional pressure on prices. The decline in oil prices could pose an economic challenge for exporting countries, including Russia, which is already experiencing difficulties due to sanctions and production cuts.
The US energy policy will be an important factor affecting both the economy and geopolitical stability in the world.
