Future prices for Brent show markets are expecting a price fall in 2014, which Daniel Lacalle, senior portfolio manager at Ecofin, agrees with. He told CNBC that the Middle East premium is going to gradually recede and prices will fall.
Falling energy prices are always very good for the economy....the biggest stimulus in the U.S. has not been QE (quantitative easing), it's been the falling energy prices, he told CNBC Wednesday.
OPEC's negotiations come at a time when the U.S. is undergoing a revolution in shale gas and oil. The IEA has predicted that the U.S. will surpass Russia and Saudi Arabia as the world's top oil producer by 2015, and be close to energy self-sufficiency in the next two decades. OPEC, therefore, are expected to be ready to cut the production of oil at some point in the next few years as the U.S. ramps up its efforts.