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Citi outline bearish and bullish risks for oil under Trump

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Reuters published a piece from Citi’s report on politics and oil.

Briefly:

Trump presidency may cause oil prices to fall

  • A combination of factors including tariffs, oil-friendly policies, and OPEC+ pushing more oil into the market

The main upside risk to oil markets under a Trump presidency is pressure on Iran, although this may have limited impact.

  • Under the “maximum pressure” campaign on Iran, the market could see an impact of 500,000 to 900,000 barrels per day on Iranian oil exports.

More urgently, Citi lists known risks:

  • Hurricane season is not over yet
  • Tensions in the Middle East remain high… and pressure is mounting for a ceasefire, which could be reached this summer.
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