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Bank of America Merrill Lynch says President Trump's push to reverse energy regulations could lead to lower oil and natural gas prices in 2018. The analysis expects rising US output to outweigh the investment boost from proposed tax and border policies.
The note is dated February 3.
Rising US output and lower energy prices would reduce costs for fuel, fertilizer and gas-based inputs over time. The effect on feed prices would be indirect and mainly longer term.
bloomberg.comBailey LipschultzFeb 6, 2017After 215 past bearish policy events, Crude Oil (WTI) moved a median +0.1% over 5 sessions (51% higher; middle half -4.4% to +3.3%), and +0.2% over 20.
After 34 past policy events, Natural Gas moved a median -1.7% over 5 sessions (38% higher; middle half -7.4% to +2.5%), and +2.6% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
