President Donald Trump said oil prices will decline after the U.S. midterm elections, adding that bringing them down would “take a little longer” but would happen “shortly, right after the election.”

Trump also said gasoline prices would fall below $2. Gasoline reached a Labor Day record above $4 over the weekend. Pump prices are among the most visible costs U.S. consumers see, which gives gasoline outsized political weight heading into an election season.

The comments indicate that the administration does not expect oil prices to decline before November, a position that could be viewed as a bullish sign for oil in the near term. The report also said Republicans in closely contested races would not want to hear the prediction.

The remarks tie together several threads that sit at the center of the oil market: Russia is one of the world’s largest crude producers, and Iranian export volumes have long been shaped by U.S. sanctions, making statements about both countries closely followed variables for global energy supply.

Trump made several other comments during the same remarks. On Iran, he said, “we’re not looking for a deal,” while adding that negotiations could still happen and that he was doing “much more than a nuclear deal.”

On Ukraine, Trump said, “I think the [Ukraine] war is going to end immediately after the election,” adding, “They’re desperate to try and affect the election.” He also said there could be a bilateral meeting with Russian President Vladimir Putin and that he had “a great conversation with Putin,” who he said wanted a deal. The November election date and the possibility of a Putin meeting now provide the timeline markers for the claims made in these remarks.

Source: ForexLive