FxWirePro: Donald Trump’s win opens up possibility of sub $30 oil

Republican presidential candidate, Donald Trump’s win in the US election on November 8th has opened up the downside possibility for the oil price. If Mr. Trump sticks to his campaign promises he is going to open up the tap for US energy. He would remove regulations that would not only open up the potential production for jut oil but coal and natural gas as well. His plans are to make American energy sufficient, which basically means lower import and more surplus oil globally.

At the same time, oil is suffering the doubts on OPEC deal too, which is set for finalization on November 30th, when OPEC members meet in Vienna. Doubts have emerged because OPEC members have promised to keep the cartel production between 32.5 million barrels and 33 million barrels per day but as of October OPEC produced 33.8 million barrels.

In previous articles, we already discussed this but fell short of suggesting any price level for oil.

Trade idea:

We suspect that WTI, which is currently trading at $43.5 per barrel, could decline as low as $27.5 area. This call to remain valid, oil price shouldn’t move beyond $51 per barrel.