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Trump's win pushes OPEC to cut production, says BofA's Blanch

The election of Donald Trump to the presidency gives OPEC members another reason to agree to oil production cuts when they meet next week, says Bank of America Merrill Lynch's head of global commodities and derivatives research.

Saudi Arabia is trying to guide OPEC members toward a deal to cut production by 4 to 4.5 percent, in a bid to balance global supply and perhaps boost oil prices by about $10 a barrel.

Merrill's Francisco Blanch told CNBC there are three ways Trump's win and the Republican clean sweep of Congress will affect OPEC's forecast:

First, the policies the GOP is pursuing are generating a stronger dollar and higher interest rates, neither of which bode well for emerging-market countries — or for oil demand in the developing world, he said.

A stronger greenback makes dollar-denominated crude more...


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