As Covid-19 restrictions ease in most of the U.S., attention is shifting back to the original 2020 big question – the U.S. presidential election.
Market sources were overwhelmingly negative in comments made to Kallanish about the prospect of Democratic contender Joe Biden unseating incumbent Republican President Donald Trump, with concerns ranging from trade to energy policy.
“Biden will be bad news,” says one Gulf Coast tubular trader, calling him “…predatory” toward the oil and gas industry. “Oil and gas is out of vogue now from ESG (environmental, social, governance) initiatives, and it will get worse under Biden and capital markets will tighten even more. This will prolong the oil and gas recovery.”
He adds that steel will likewise endure a prolonged recovery and the general economy “…will not bounce post-corona under Biden because of the fear of tax escalation and socialist agendas.”
A second tubular trader says a second term for President Trump will result in a doubling-down of his extant trade and tax policies.
A win for Biden, however, will likely erase the bulk of those policies from the economic map.
“If Joe Biden is elected, everything that has been put in place by the Trump administration will be overturned. It’s not complicated,” he says. “Then the economy will slow down, unemployment will go up, restrictions will be in place on all things oil, and the American public will wake up to what they have done and vote Biden out of office in 2024.”
This post appeared first on Kallanish Energy News.