Oct 12 (Reuters) – Goldman Sachs estimated that the outcome of the U.S. election next month would have no impact on the upward outlook for oil and natural gas prices, and said a landslide victory by Democrats could be a positive catalyst for the energy industry.
Goldman reiterated its optimistic 2021 projections for natural gas and oil, arguing that the factors driving prices higher outweigh the result of the November 3 presidential election.
“The recent turn in oil prices, which rise on days when there are more expectations for economic stimulus and a weaker dollar, suggests that a Biden victory and Democratic control of Congress would be a catalyst to the upside for the barrel.” the bank said, adding that natural gas prices could rise as well.
Opinion polls indicate that the Democratic candidate for the White House, Joe Biden, has a considerable advantage over President Donald Trump at the national level, although this leadership is shortened in some of the states that could finally decide the outcome of the elections of the November 3.
The hurdles facing US oil and gas production would grow under a Biden administration as the chances of more regulation on the extraction of crude shale will rise, Goldman added.
Biden’s environmental policies also point to a more rapid rollout of renewable energy sources than currently expected, Goldman said, adding that this agenda would require more infrastructure and possibly a significant initial stimulus package, leading to increased demand for oil in the coming years.
(Reporting by Nakul Iyer and Eileen Soreng in Bengaluru. Edited in Spanish by Marion Giraldo)