yolowire.com - Oil and gas prices are likely to fall under a second Donald Trump presidency, says a prominent analyst at BankofAmerica (NYSE: BAC).
Commodities analyst Francisco Blanch said in a recent interview with Bloomberg that Trump’s proposed tariffs will likely curb global trade, driving down prices for crude oil and natural gas.
"America first means commodities second," he said in the interview.
Trump has floated tariffs of 10% to 20% on all countries, except for China, where America would impose duties of up to 60%.
Those proposed tariffs are likely to slow economic growth and lead to higher inflation and interest rates, dampening demand and prices for items such as oil and gas, said Blanch.
While Trump has also promised to deregulate fossil fuel production, Blanch said that if prices for oil and gas are lower amid tariffs, that could mean production slows as producers see less incentive to accelerate drilling.
U.S. oil production is already at historic highs, reaching a record 13.4 million barrels a day in August of this year, leaving little room for accelerated production.
Blanch added that demand concerns in China and geopolitical tensions in the Middle East add to a gloomy outlook for crude oil and natural gas heading into 2025.
West Texas Intermediate (WTI) crude oil, the U.S. standard, is currently trading at $70 U.S. a barrel.