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.
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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.
The revolution in shale oil and gas production could give the world's largest economy energy independence and represents a substantial threat to the competitiveness of oil.
According to a PricewaterhouseCoopers study published in February, shale oil will contribute 14 million barrels per day toward the global oil production by 2035, roughly 12 percent of today's supply.