InvestorQ : Do you expect big supply cuts in oil and how is that likely to impact the prices of crude oil in the global market?
Anamika Sodhani made post

Do you expect big supply cuts in oil and how is that likely to impact the prices of crude oil in the global market?

Answer
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5 months ago


With the US under strain, Trump is going all guns blazing to protect US oil jobs. Trump has hinted at plans to impose tariffs on oil imports in coming months. US shale companies are heavily leveraged and low oil prices could push shale companies into bankruptcy. The US currently imports around 1 million bpd of crude oil. While Russia and OPEC are yet to commit on supply cuts, there is a higher degree of willingness from Norway to cut production. Norway, has expressed willingness to cut oil output subject to greater cooperation from more countries. For Norway, oil is the largest source of revenues but the $1.2 trillion Norwegian SWF is seeing forced selling in equities due to fall in oil prices.