The U.S. Role in Oil Price Fluctuations since 2001

Oil price stability is an important aspect of energy security and plays an important role in the international economy. A number of factors influence oil price and its fluctuations: level of production on a global scale, inclusive of both OPEC and non-OPEC members; global level of consumption; level of investment in the energy sector, inclusive of the oil sector; and foreign exchange fluctuations, especially fluctuations in the parity value of the U.S. dollar. Oil price changes in turn impact producers, consumers and international oil companies, and affect their respective policies. Given its huge oil reserves and production and consumption capacity, the United States enjoys a special place among all major oil countries. The U.S. oil policy, also supported by a usually strong dollar, has played a very significant role in the oil price fluctuations during the past decade. In addressing the U.S. role, the present article will look into: 1) factors influencing oil price fluctuations since 2001; 2) the role of fluctuations in the U.S. dollar; and 3) the relative weight of the U.S. production and consumption capacity among non-OPEC oil countries.