U.S. President Joe Biden’s new energy policies will have a moderate impact on Brent prices overall.
That’s what Matthew Bey - a senior global analyst with Stratfor, a RANE company - told Rigzone, adding that short term price dynamics are largely being driven by Saudi Arabia, OPEC+ policy and the pace of the economic recovery from Covid-19.
“Over the next two years the economic recovery from Covid-19 and the pace of it globally, coupled with the pace of global production growth will play a driving role in price formation,” Bey said.
“President Biden's policies could slow down the pace of resilience that United States onshore producers have when reacting to higher prices, which would slow down a surge in supply that could temper price increases,” he added.