As The Dallas Morning News pointed outthis week, it’s possible that a Trump administration could cause oil prices to drop even further.
Trump has indicated that, in his first 100 days, he’ll “absolutely 100 percent” approve plans for the Keystone XL pipeline from Canada to Texas. The problem with this plan is, it will only serve to introduce more crude into an already glutted world market.
OPEC recently ramped up production to a record high, sending oil prices even lower than their already historically low levels. Experts say the last thing oil markets like the High Plains need is more oil on the market.
Trump has also said he will lift federal restrictions on extracting coal, oil and gas. This, again, will only serve to increase supply.
Oil producers will be watching with a wary eye, in hopes that someone keeps a tight control on markets to keep supply from far outpacing demand.
