The main reason for that seems to be the perception of relative weakness in the Chinese economy, although, as I have said over the last few weeks, the pro-Russia and “drill baby, drill” policy proposals from Donald Trump during the campaign suggest quite significant increases in the supply of crude, which have at least put a ceiling on WTI.
Investors are bracing for a federal government likely to roll back aid for clean energy projects and to ease regulatory pressures on oil and gas companies, said Dan Pickering, chief investment officer for Pickering Energy Partners.
Under the Biden administration’s new rule, certain oil and gas facilities would be charged $900 per metric ton of “wasteful” emissions in CY 2024, $1,200 for CY 2025 and $1,500 for CY 2026.
Speaking at the annual U.N. climate summit in Baku, Azerbaijan, known as COP29, Woods described international climate negotiations as valuable opportunities for Trump to adopt pragmatic policies.
Citi analysts have forecast that Brent crude would average $60 per barrel next year driven lower by the energy policies of the incoming U.S. administration.