Representatives of the Democratic Party in the USA received a majority in both houses of Congress. How can the new array of American power now affect the world economy, and what interests us more, the Russian economy? Should we, the Russians, expect lower prices for oil and other raw materials, new sanctions or, on the contrary, despondency between the two countries? Answers from experts in the polls section.
The editor-in-chief of "Oil and Capital" Vladimir Bubilev:
The Democratic majority in Congress has traditionally focused on a tough "green" agenda. It is expected that environmental supervision will be strengthened, the procedure for issuing licenses for drilling on federal lands will be complicated, and a number of tax preferences for the oil and gas sector will be cut. Trump will protect the industry with a veto, but regulatory uncertainty will limit long-term investment in US shale production, holding back global supplies.
After the White House's pre-election interventions aimed at reducing domestic gasoline prices, commercial oil reserves in the United States are at low levels (the overnight API report saw them fall by another 5.27 million barrels). Now Washington will have to renew its empty storage facilities. The sellers will see large-scale government purchases and want to make money, meaning they won't lower the price further - the US Department of Energy will buy anyway.
US foreign policy will not change dramatically. First, no matter what party the congressman belongs to, American hegemony is a common trend: to contain China, to influence Europe, to play against Iran's nuclear program, and apparently, to make money from Ukraine. Second, there is a presidential veto - to overcome it you need the consent of 2/3 of the members of Congress, and such solidarity is not maintained in the current situation.
Congress will now be able to more actively influence the sanctions policy towards Iran.