US elections 2024: Global energy outlook expected to shift if Trump returns to White House

Donald Trump with son Barron Trump (left) and wife Melania Trump at the election night watch party on Wednesday. (Pic/PTI)

Donald Trump's victory in the US presidential election could significantly impact the global energy outlook, reported news agency ANI.

Trump, known for his advocacy of domestic energy independence, is expected to boost US oil and natural gas production, potentially exerting downward pressure on global crude oil prices.

Trump's policies could lead to a correction in crude prices, as he is likely to keep them under tight control by increasing domestic production. His emphasis on energy self-reliance is expected to reduce US dependence on foreign oil sources, thereby affecting global supply and pricing dynamics.

Additionally, Trump's non-interventionist approach to foreign conflicts could help stabilise oil prices by allowing conflicts to de-escalate more quickly.

However, potential volatility could arise if Trump imposes new sanctions on Iran, a measure that could disrupt oil supplies from the region, stated ANI.

Donald Trump's influence on the energy sector could lead to lower crude prices, though external factors will play a significant role. However, around 11:40 am on Thursday, Brent Crude prices had surged 0.65 per cent to $75.41 per barrel.

Beyond energy, Trump's policies are expected to be expansionary, potentially increasing the US fiscal deficit and national debt.

This rise in US debt is anticipated to positively impact gold prices, as investors may turn to safe-haven assets in response to heightened debt levels and potential inflationary pressures. ANI stated that Gold is already experiencing high demand in China, adding further support to its value.

Despite some arguments against gold due to reduced volatility in equity markets, a stronger dollar, and a potential "risk-on" rally in equities, gold's fundamentals remain strong.

It also reiterates a positive outlook on silver, which could benefit from economic uncertainty and increased demand for safe-haven investments.

However, it's worth noting that on Thursday, the Gold prices had declined to Rs 78,710 per 10 gm, down from Rs 80,500 on Wednesday.

(With inputs from ANI)