The United States recently became the world’s largest oil producer, taking over a place that was usually reserved for the middle eastern countries. Perhaps due to the conflicts in the middle east including, the war in Yemen and the blockade placed on the Qatar and more recently the death of the journalist in the Turkey, the oil price has steadily climbed up and the $100 per barrel no longer seems unattainable. Already economist and analysts are making forecasts and projections of a posible over $200 per barrel
The oil price which is affected by a combination of many factors including supply, demand, conflicts, politics and many others has seen all these factors affected significantly, from the change in political climate in the United States to Brexit in Europe. Wars and conflict ongoing in the Middle East is also having a huge impact on the oil price. The organisation of petroleum exporting countries (OPEC) are now seeing a challenger to their influence, mainly the US shale producer. Adding to this, the fact that oil is being found and produced from countries that didn’t have oil previously such as Guyana and Israel. This has in turn led to the US producing more than any other country for the first time ever.
It is unclear the reason for the change in US previous energy policy, which required that a large amount of the countries oil reserves was not produced but left untouched. However, the change in this strategy has seen the US now produced more that its Middle Eastern counterparts. It is now only a matter of time to see if, the economist forecast of over $200 per barrel is possible.