Price dip from Trump poll victory likely to be short-lived

Donald Trump’s ‘America First’ energy plan was long on words and short on detail, so no-one knows at this stage exactly how his broad policy goals will be put into place, but the oil market reacted decisively to his victory. US benchmark WTI futures nose-dived on the perception that Trump’s trade policies would lead to more protectionism and that his pro-fracking stance would result in higher oil production in the United States.

Before becoming president-elect, Trump promised to rescind executive decisions taken by outgoing president Barack Obama, revive the coal industry and reduce oil imports by boosting domestic hydrocarbon production. Given the high priority accorded to employment in Trump’s campaign, infrastructure spending, building pipelines and reducing controls on fracking seem likely to play a role.