U.S production of liquid petroleum is set to outstrip that of Saudi in the next months. The watchdog organisation, The International Energy Agency, has reported that U.S and Saudi production of oil, ethane and propane were balanced in June and in August this year with 11.5 million barrels per day.
America, however, is now overtaking its Middle Eastern counterpart by making technologies such as hydraulic fracturing (fracking), commercially viable across many states.
Growth in the U.S oil industry over the last two years has increased production by 3.5 million barrels per day, which comprises nearly the total world’s increase in that time. Subsequent fall out, or benefits depending on stance, from these figures are striking: Brent crude was at a 2 year low of $95.60 per barrel last week; the U.S will reduce oil imports down to 21 per cent, and the U.S trade deficit in energy has shrunk.
With these factors effecting both the commodities markets and stocks in the petroleum and related industries, investors are optimizing on the current situation.
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