US-China trade deal, Boris Johnson and USMCA win trifecta for commodities
Expect demand for oil, gas and agriculture to get a healthy boost
The landslide victory of UK Prime Minister Boris Johnson along with President Trump’s victory on phase one of the U.S. China trade deal, as well as United States-Mexica-Canada agreement (USMCA) earlier this week is signaling a global move to the right and more pro-business policies which should boost demand for agriculture and oil, among other commodities.
By lifting trade barriers and leveling the economic playing field we should unleash an era of solid global economic growth and create prosperity.
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|USO||UNITED STATES OIL FUND L.P.||60.98||+0.01||+0.02%|
|GCC||WISDOMTREE TRUST ENHANCED COMMODITY STRATEGY||17.37||+0.06||+0.35%|
The first focus after the backdrop of the U.S. China trade deal will be agriculture. U.S. farmers who were on the front lines of the trade war will now see their pain eased with China committed to buying $50 billion of U.S. agriculture products.
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Across the pond, the UK people want to be set free of the European Union and their restrictions. They want their people and their business’s make the decisions that are best for their future. While some worry that a hard Brexit could lead to some economic disruptions, it will also open up new opportunities and perhaps a deeper trade relationship with America. Instead of being reliant just on EU trading partners the UK will be open to a new world of possibilities.
Those possibilities should extend across the globe. This will create a strong demand for oil, gas and other energy products as economic growth rises, more is needed to fuel that growth.
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Governments should be getting the message that people want to do business. They want to do it free and fair. They want to prosper and whenever possible they need the government to get out of the way.
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Phil Flynn is senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at firstname.lastname@example.org.