Oil Surges Past Shale-Drilling Tipping Point as Glut Shrinks

4 Jan 2018   Prices

Stockpiles probably fell 4.7 million barrels last week: survey Dallas Fed survey found $61-a-barrel is key price level Oil approached $62 a barrel for the first time in three years, surpassing a crucial threshold for spurring new shale drilling. Wednesday’s 2.1 percent jump in New York-traded futures delivered exactly what the largest cohort of oil executives in a Dallas Federal Reserve survey last month said they needed to justify more shale exploration: prices above $61. If crude continues to climb and crosses the $66 mark, even more corporate chiefs indicated they’re ready to pile in, according to the survey. U.S. shale drillers have become OPEC’s bogeyman because of their penchant for lightning-fast drilling expansions that threaten to undo the cartel’s hard-won reductions of a worldwide glut. For the day, oil rose on expectations that a U.S. government report scheduled for release on Thursday will register the longest decline in […]

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