Former President Donald Trump accused the Organization of the Petroleum Exporting Countries (OPEC) of deliberately lowering oil prices to benefit Vice President Kamala Harriswarning that her potential presidency could be a “disaster” for the US
Do not miss it:
What happened: Trump took to his social media platform, Truth Socialto express his concerns about OPEC’s actions. He wrote: “OPEC countries are doing everything they can to drive oil prices down in the hope that crazy Kamala Harris wins. Then they will really reap the rewards! She will be a disaster for the US!”
Also see: American construction sites are desperate for robots — This is how you invest in a startup that prints them yourself and become part of a $16 trillion industry.
Trump’s comments come after oil stocks have recently fallen amid speculation that Harris would take a tougher stance on the oil and gas industry if she were to become the Democratic presidential nominee and win the race for the White House.
At the time of publication, oil stocks are still in the red after President Joe Biden decided not to run against Trump in 2024 and endorsed Harris as the leading presidential candidate on July 21.
According to data from Benzinga Pro, the price of WTI crude oil fell from $78.64 to $75.43 after Harris declared his presidential candidacy.
Trending: Don’t miss the real AI boom: Learn how you can invest in fast-growing private tech companies with just $10.
Chevron Corp (NYSE:CVX), Marathon oil (NYSE:MRO), ExxonMobil (NYSE:XOM), ConocoPhillips (NYSE:COP), and EOG sources (NYSE:EOG) are all facing declines.
ETFs linked to the oil sector have also reflected this downward trend, with United States Oil Fund (NYSE:USO), SPDR Select Sector Fund – Energy Select Sector (NYSE:XLE), Vanguard Energy ETF (NYSE:VDE), and iShares US Energy ETF (NYSE:IYE) are all under pressure.
If Harris wins, her administration could focus on climate policies, including reducing carbon emissions and increasing financing for renewable energy projects. This shift could result in higher compliance costs and stricter regulatory requirements for the oil industry, potentially affecting profitability.
Trending: Commercial real estate has historically outperformed the stock market, and This platform offers individuals the opportunity to invest in commercial real estate with as little as $5,000, with a target return of 12% and an additional 1% return today!
Why it matters: A report from Citi on Monday suggested that a Trump presidency could be “net bearish” for oil prices, due to his oil-friendly policies and potential tariffs, which could increase oil supply and lower prices.
However, according to the same report, the biggest threat to oil markets under a Trump presidency would be pressure on Iran. If Trump were to repeat his previous campaign of maximum pressure on Iran, Iranian oil exports could fall by 500 to 900 thousand barrels per day, which would impact global markets.
Further, Goldman Sachs warned last week that the next US administration will have limited ability to significantly increase domestic oil supplies due to low strategic oil reserves and possible regulatory relaxation.
In a broader context, the US has produced record amounts of oil, averaging 12.9 million barrels per day in 2023. This production surge has raised concerns about a potential glut, reminiscent of the COVID lockdown period of 2020.
Moreover, Trump’s rift with OPEC is not new. In April 2018, the former president tweeted that OPEC had inflated oil prices “artificially very high,” a move that “will not be tolerated.”
Read more:
“SECRET WEAPON FOR ACTIVE INVESTORS” Boost your stock market game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start your 14-day trial now!
Want to receive Benzinga’s latest stock analysis?
This article Trump Accuses OPEC of Manipulating Oil Prices to Favor Kamala Harris, Warns ‘She Will Be a Disaster for the US!’ originally appeared on Benzinga.com
