One of the main objectives of the Three Seas is to reduce the group's energy reliance from Russia, and Eastern European countries have been trying to diversify their energy sources for a while, Tamar Essner of Nasdaq Advisory Services told CNBC early Thursday morning. Naturally, this bodes well for natural gas producers in the U.S., as they could see an increase in exports to the European markets.
Meanwhile, oil prices rose higher early Thursday morning; the United States Oil Fund LP (ETF) USO gained nearly 2 percent to trade at $9.43.
Not An Easy Sell?
Trump's visit comes at a time when Qatar is looking to increase its LNG exports by 30 percent, Essner continued. Also, much like the crude oil market, the global LNG market is over-supplied in a "lower for longer" environment, especially if "everyone wants to bring supply forward."
There are more complications that could impact the ability of American producers to gain market share in Europe. Specifically, Invenergy LLC, an American-based energy company, filed a $325 million suit against Tauron Polska Energia SA, a Poland-controlled energy giant.
While the company claims the timing of its suit is "purely coincidental," it adds another question mark to the global energy market and uncertainty to a long-term recovery in energy prices.
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One Reason For Oil Bears To Be Happy And One Reason To Be Concerned
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Image Credit: "President Donald J. Trump | June 9, 2017 (Official White House Photo by Andrea Hanks)" By The White House from Washington, DC - Photo of the Day: 6/12/17, Public Domain, via Wikimedia Commons
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