Bitumen product : Many people have questioned the fact that how the US election affects the future oil market and the price of bitumen product and oil. Therefore, we have decided to discuss the possibilities of oil market changes in this article.
US Elections, affecting the bitumen product
The US election is important because it has a profound effect on all global relations
from economics to politics and energy such as global energy markets, international financial markets, environmental treaties, bitumen product and the oil market. So it is not unreasonable to say that from the day November 3 One of the two
Republican and Democratic parties can influence anything on the planet more than ever. Since each has different priorities and plans. To put it differently, Trump seeks “greater dominance of energy markets,”
which he achieved in part by increasing shale oil production and surpassing the world’s largest oil producers, Saudi Arabia and Russia.
However, his plans to become the world’s largest oil producer went almost flawlessly until
the spread of the corona and declining global production and trade led to the closure of some oil wells
in the United States and the closure of drilling companies. On the other side of the spectrum stands Biden,
who has vowed to cut the US carbon dioxide emissions to zero by 2025 if he goes to the White House. The same promise could reduce shale production by 2 million barrels by 2021. Certainly, shale production cuts are not what oil producers and
Trump sponsors are looking for.
How will the vaccine affect the bitumen product and oil market?
Generally, elections in the United States, at a time when almost the whole world is
battling the Corona pandemic and new quarantines have been imposed by some countries such
as France and Germany, have almost dashed hopes of getting rid of the disease before the start of the New Year.
On the other hand, the competition between international pharmaceutical companies for the
Corona vaccine formula has been almost fruitless,
and even US oil producers, who are traditional supporters of Trump,
have not escaped the bite of the disease. In such a situation, the competition between drug cartels,
bitumen product and oil producers for the US elections has intensified.
Moreover, less than a week before the US election,
anything, whether a change in some of Biden’s future economic policies or the revelation of a secret document about Trump,
could highlight the role of a cartel. In 2016, the desire for the United States to become one of the largest oil producers in the world led
most oil-rich states to turn to Trump, but in this election, the acquisition of the Corona vaccine is the winner,
because according to official reports, oil demand and bitumen product by the end of 2021 do not return to before the corona pandemic,
and the world needs more vaccines than oil to reach pre-corona levels. Hence, the role of drug cartels in this election may be more.
According to the International Monetary Fund, any country that can obtain the corona vaccine
and make it widely available to the world will add $ 9 trillion to global revenues. The result of these propositions is a huge loss to the oil cartels and a
high profit to the drug cartels if the Democratic candidate, Joe Biden, is elected. But the oil cartels have not given up either. “Oil companies have donated more than $ 13 million to Trump’s campaign,
while Biden has received less than $ 1 million,” according to Der Spiegel.
The oil cartel behind Trump
Over the past four years, Trump has had a major impact on power relations, especially in the commercial and energy markets;
he launched a full-scale trade war with China that,
despite signing the first phase of a trade agreement earlier this year and halting some tariffs,
cut global GDP by 0.6 percent in 2019, according to Bloomberg.
In other words, the world economy lost about $ 500 billion from the trade war between the two superpowers. The oil cartels, who were also considered Trump’s supporters, were damaged by the trade war,
as US disputes with China clouded optimism about the future and reduced global oil demand and bitumen product.
It’s also worth mentioning, Trump intended to use all means and power after the election to extract more shale oil;
Despite the opposition of environmentalists, he continued to produce shale oil, to the point that,
according to the 2019 World Energy Outlook, published by the British oil and gas company BUP,
oil producers in the United States were able to survive before the Corona Pandemic. Additionally, Saudi Arabia and Russia also produced between 11 million and 400 to 500 thousand barrels per day,
which was much lower than the United States.
However, the global corona outbreak has sharply reduced oil demand. According to Bloomberg after the first round of quarantine in developed countries, “Daily oil demand fell by about 35 million barrels in April,
and the second quarantine in many countries, including Germany and “France has announced that, for a long time to come,
daily oil demand will fall by more than 10 million barrels per day.”
The situation seems to be a bit difficult for Trump oil supporters because if he is not elected,
they will lose someone who once considered himself the savior of shale oil and believed that the rise in oil prices was due to
“talking to Ben Salman to reduce production.”
OPEC, US elections and the economy, all affect the oil market and bitumen product
Oil producers know that with the coming to power of Biden, who wants to create a “clean energy revolution”,
restoring oil prices and production levels ahead of the corona will become a priority for the Biden government.OPEC, on the other hand,
is losing the “leverage” to cut production, and it does not care about the decline in US oil production,
so it may increase production until the expiration of the production cut with the slightest sign of improvement. So it is not unreasonable for oil producers to spend millions of dollars to bring Trump to power.