Mohamed El-Erian, professor at the Wharton School and chief economic advisor at Allianz, says the war, among other things, is wearing down confidence in the U.S. and its “ability to inform and influence outcomes.”
The U.S. is up, OPEC is down.
A supply glut tends to reduce prices, which could prove challenging for President-elect Trump’s plan to boost U.S. oil production.
Production cuts may no longer be as effective at propping up prices because electric vehicles are cutting into global demand.
The expectation was that OPEC countries would continue cutting back supply. Some think the delay may mean there’s disagreement about that.
There’s a disconnect between the ongoing demand for fossil fuels and White House messaging about reaching net-zero emissions.
Ramping up production when demand is still weak could have major consequences on a relatively stable oil market.
A historic plunge in demand during the global pandemic has pushed U.S. average gasoline prices to $1.91 a gallon.
The Trump administration looks to cut the Iranian economy from a key source of revenue. Analysts say past sanctions weren't totally able to do that.
