US Oil Headed for Steep Drop to $75: Pro
By Katie Holliday
The price of West Texas Intermediate crude oil is set to plummet to $75 per barrel as increased use of shale oil in the U.S. blots out demand for WTI, one expert told CNBC.
Andrew Su, CEO of Sydney-based commodities trading firm Compass Global Markets, gave a bearish forecast for WTI on CNBC’s “Asia Squawk Box” on Tuesday. He said its value would drop around 18 percent by the end of the second quarter and even further beyond that time.
“Shale oil is the reason why oil prices fell last year and the reason why it will continue to fall in the next few years,” said Su.
“Shale oil will reshape the way that the entire oil industry is run, and the U.S. will become an exporter of oil in next five to 10 years. That will have a significant impact on the U.S. and the global economy,” he added.
(Read More: California’s Monterey Shale, the Next Oil Boom?)
Shale oil—also known as kerogen oil— is an unconventional form of oil extracted from shale rock formations, only made possible in recent years through technological breakthroughs.
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