‘Same procedure following Obama’s victory,’ Norway analysts say / News / The Foreigner

‘Same procedure following Obama’s victory,’ Norway analysts say. US President Barack Obama’s re-election lifts Oslo Stock Exchange (OSE), Wednesday morning, but financial experts believe more in ‘business as usual’. “The short-term status quo is not altered when it comes to oil and the US economy”, Erik Bruce, Nordea Markets’ chief analyst tells The Foreigner, “The outlook ahead is for not very strong growth.” Mr Bruce views Obama’s main challenge in his second term to be avoiding the so-called “fiscal cliff”.

barackobama, uspresidentialelections, norwayoilprice, worldoilprices



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‘Same procedure following Obama’s victory,’ Norway analysts say

Published on Wednesday, 7th November, 2012 at 13:25 under the news category, by Michael Sandelson   .
Last Updated on 7th November 2012 at 13:46.

US President Barack Obama’s re-election lifts Oslo Stock Exchange (OSE), Wednesday morning, but financial experts believe more in ‘business as usual’.

President Barack Obama
President Barack Obama
Photo: Lawrence Jackson, White House photograph


“The short-term status quo is not altered when it comes to oil and the US economy”, Erik Bruce, Nordea Markets’ chief analyst tells The Foreigner, “The outlook ahead is for not very strong growth.”

Mr Bruce views Obama’s main challenge in his second term to be avoiding the so-called “fiscal cliff”.

“A Republican Congress and Democratic President will have to reach agreement on tax increases and spending. There’ll probably be a lot of noise, but in all likelihood it will be solved in the 11th hour,” continued Mr Bruce.

He explained Nordea Markets has based its view on Obama winning.

“The Republicans seem to have difficulty going back and winning an election. To do this, one probably has to reach the centre of the population, which Mitt Romney was trying to do in the final election campaign stages.”

Do you think hurricane ‘Sandy’ helped Obama win?

“I suppose 'Sandy' could have had an effect on the election result with the way he acted, yes. At the same time, he managed the challenge to get the minority population to vote for him,” he said.

Bjørnar Tonhaugen, Nordea Markets senior oil analyst, does not expect major changes in the near future, either.

“We’ve reached the stage where producers and consumers are happy. Oil prices are high, US domestic oil production keeps supplies flowing, and is expected to show firm growth,” he informed The Foreigner.

Mr Tonhaugen thinks Obama’s victory is also positive for the production of oil when it comes to the Middle East, with a lower danger of upward pressure on prices.

“Oil production in this region is very sensitive to supply disruption from this region, as we’ve seen with Libya and Syria. There’s also less risk of conflict with Iran. Obama has more of a conciliatory tone when it comes to foreign policy, while Romney was more hawkish.”

“We’ve now reached a necessary plateau in relation to oil prices, currently above USD 100 per barrel,” Mr Tonhaugen declared, “and we’re still confident in our predictions it will be of USD 111 and USD 115 per barrel in 2013 and 2014, respectively.”



Published on Wednesday, 7th November, 2012 at 13:25 under the news category, by Michael Sandelson   .
Last updated on 7th November 2012 at 13:46.

This post has the following tags: barackobama, uspresidentialelections, norwayoilprice, worldoilprices.





  
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