Donald Trump News / The oil game will end, Gulf countries' policies will fail in front of Trump

After Donald Trump's return to power, the possibility of a fall in crude oil prices has increased. Increase in US shale production will increase global supply, which will reduce the dominance of OPEC+. Import-dependent countries like India will benefit, but it may take time for petrol and diesel to become cheaper.

Vikrant Shekhawat : Jan 22, 2025, 07:40 PM
Donald Trump News: Global crude oil prices have fallen by 2% since Donald Trump took power. This change indicates that oil production in the US is likely to increase. The policies of the Trump administration have the potential to reshape global energy markets, which will have a huge impact not only on the strategies of the Gulf countries' OPEC and OPEC+ organizations, but also on countries that depend on oil imports for their energy needs.

US oil production indicated a jump

Industry experts believe that US crude oil production could reach new levels under Trump's leadership. With shale oil production likely to pick up, US oil supply will increase, which could lead to a drop in crude oil prices in the international market. According to Mukesh Surana, CEO of Ratnagiri Refinery and Petrochemicals Limited, if the Trump administration fulfills its promises, the US will not only make maximum use of its shale oil resources but will also weaken OPEC's grip by increasing global supply.

Pressure on OPEC's strategies

OPEC and OPEC+'s price control policies may be rendered ineffective by the rise in US oil production. Increased US supply will put pressure on OPEC+'s market share, which will not only lead to a drop in oil prices but will also force OPEC+ to rethink its strategies.

Possible benefits for India

India, which imports more than 80% of its energy requirements, could be the major beneficiary in this situation. Cheaper crude oil prices could reduce India's import bill, thereby improving the trade deficit and controlling inflation. Additionally, lower oil prices could bring relief in fuel prices for domestic consumers.

Possibility of Ukraine war and price drop

Experts believe that if the Ukraine war ends and Russian gas supplies normalise again to Europe, LNG and crude oil prices are likely to fall by up to 20%. This will not only be beneficial for Indian refining companies but will also provide relief to domestic gas consumers.

Impact on the green energy sector

Trump has indicated to end the Green New Deal and the Electric Vehicle Mandate. This policy change may affect the renewable energy sector, which is likely to have an impact on the development of green energy and electric vehicles internationally.

Will petrol and diesel become cheaper?

Although oil prices are expected to fall, there is little chance of an immediate reduction in the retail prices of petrol and diesel. This reduction will be possible only if international oil prices remain low for a long time.

Conclusion

Donald Trump's policies can redefine the global energy market. Increase in US oil production and weakening of OPEC's grip may lead to a decline in crude oil prices. This is a sign of economic benefits for import-dependent countries like India. However, it will be important to see how these changes affect the green energy sector and global environmental goals.