There is a period of great turmoil in the international energy market these days. Both investors and common consumers are confused about what trend the prices of crude oil and gas will take in the coming days. Meanwhile, a statement by US President Donald Trump has come out, which has further increased the restlessness in the commodity market. Just before the important midterm elections in America, Trump has indicated that any major change in energy prices may be seen.
What does this mean for the market?
Donald Trump has made a small but very important comment on his social media platform ‘Truth Social’. He wrote, “Before the midterm elections, oil and gas prices may come down, or perhaps even go up a little more.” Trump has not revealed any specific policy or technical reasons for the market in this post. But, his direct statement confirms that at present the global market is completely trapped in a whirlpool of uncertainty.
Double pressure of geo-political tension
At present the crude oil market is facing huge pressure on many fronts. Ongoing diplomatic disputes around the world, supply chain disruptions on major trade sea routes and decisions of crude oil producing countries (OPEC+) have made prices extremely volatile. Apart from this, due to the changing pattern of global demand, the prices of crude and natural gas are also experiencing shocks. Unless a permanent solution is found to these geo-political tensions, there is every possibility that this turmoil will continue in the market.
The entire world economy will be affected
This uncertainty of the energy market is not going to be limited only to the borders of America. The results of America’s midterm elections and its policies directly affect the economy of the entire world. If crude oil prices increase rapidly, then the import bill of crude will increase in countries like India also. This will have a direct impact on transportation cost and inflation of everyday items.
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