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Lipow Oil Associates President Andy Lipow joins Catalysts co-hosts Madison Mills and Seana Smith to share insights regarding the energy sector's outlook as the second Trump presidency begins, with the commander in chief holding onto his "Drill, Baby, Drill" mantra.
According to Lipow, Big Oil producers are primarily focused on crude oil (CL=F, BZ=F) prices when making investment decisions. While the Trump administration's regulatory easing "makes more acreage available to these producers," companies must still weigh whether the "financial reward for investing hundreds of millions of dollars" is worth it.
Lipow notes that domestic oil production is "expected" to reach new records in 2025. However, he emphasizes that "the oil market is actually looking at the Trump administration policies overseas," particularly regarding Russian, Venezuelan, and Iranian sanctions, which could significantly impact global oil supply and prices.
Trump's Treasury Secretary nominee, Scott Bessent, stated he would be "100% on board" with raising sanctions on Russian oil if President Trump directed policy to end the Russia-Ukraine War.
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Watch the full video above further insights into Lipow's concerns about proposed 25% tariffs on Canada and Mexico and what it means for oil markets.
Also catch Stifel chief Washington policy strategist Brian Gardner speak to Yahoo Finance, who refers back to Trump's energy policy goals and cites one of the great economic "conundrums" the administration may face.
To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
This post was written by Angel Smith