The surprise election of Donald J. Trump has added an element of uncertainty in more than one area. News of his win brought a move higher in U.S. Treasury yields and further strengthening of the dollar. Potential infrastructure spending has been a hot topic, and the naming of a new energy secretary has prompted hopes of a lighter regulatory burden on the energy sector. Aside from politics, uncertainty is also evident in commercial banking circles serving the energy sector. There is some comfort in crude prices having apparently stabilized in a broad $40 to $50 per barrel (bbl) range, but this was ahead of the OPEC meeting in Vienna that took place on Nov. 30. Assuming fundamental factors prevail, the outcome—we now realize—could push the rebalancing of the global oil market along a shorter path.
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