Publications: Notes at the Margin

The Hallucinations of Oil Market Watchers (November 25, 2024)

 

On November 23, The New York Times published an article with this headline:

Trump Promised to Halve Energy Costs in 18 Months.
Experts Have Doubts.

 

The report quoted individuals who have become the go-to sources for energy reporters. These “elites,” which include Jason Bordoff, head of an energy program at Columbia University and former adviser to President Obama, and Robert McNally, a former adviser to George W. Bush, scoffed at the idea that President Trump could affect energy prices.

 

Like the political elites who sneered at the idea of Donald Trump getting elected, the energy elites are hallucinating from deep within their energy silo, seemingly unaware of economic developments. If confirmed, Scott Bessent, as Secretary of Treasury, guarantees a trade war, and, as we noted in our November 11 report, commodity producers lose trade wars. Crude oil at $40 or $30 per barrel and gasoline at $1.50 per gallon may be coming.

 

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