Article by Investazor.com
Apparently, the case of the Republic of the United States of America becoming the largest oil producer in the world, overcoming Russia, is getting more attention because is adding more and more evidences.
On the strength of the shale revolution, the U.S. is now playing an important role among the OPEC countries. In the second half of 2014, the U.S. is estimating to become the largest non-OPEC oil producer, overcoming Russia, which now is constrained to make large investments in new pipelines. This fact may contribute to the stabilizing of the price of oil in the long term as the supply will definitely increase.
The International Energy Agency has been observing the fact that the production of oil among the non-OPEC countries has been steadily increasing while the OPEC countries are in danger to register a lower demand. Likewise, the disputes present on the Arabic territory lately are unbalancing the normal pace of the process of producing and exporting oil.
In its recent report, the IEA upgraded its demand growth forecast, especially when it comes about the Euro zone which is believed to have overcame the crises and register an increase in the demand of oil. Likewise, the main importer of the European area may become the U.S., disadvantaging Russia and the Arabic countries.
Apparently, oil prefers now a more calm and stable zone as the Middle East makes it a sensitive commodity.
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