President Trump's "America First Energy Plan" was initially perceived by the market to be bullish for energy, and perhaps his policies will be. Less regulation, more drilling and infrastructure plays sound like a plan to revive an industry plagued by lower oil prices the last two years.
But the potential issue with the plan, especially at a time when the market is attempting a supply/demand rebalance, is that it could create an environment where supply dominates and oil prices decline.
CNBC's exclusive oil survey polled 14 traders, analysts, and hedge fund managers on the administration's impact on oil prices, and about half said Trump is not bullish for oil prices. Pumping more oil without a reciprocal boost in demand is net-net bearish.
"The Trump Administration is modestly bearish for prices of crude oil, but demonstrably bullish for domestic crude oil production," said Dennis Gartman, the founder of The Gartman Letter.