| U.S. shale-oil companies that cut production when prices plunged are prepared to return rigs to operation as prices rise, Georgi Kantchev and Bill Spindle report. The companies are being seen as so-called swing producers that can boost production when prices are high and cut back when they fall. U.S. benchmark West Texas Intermediate settled at $60.50 a barrel on Wednesday in the wake of a 40% rally in crude prices since March, and some companies said they would resume production if WTI reaches $70.
U.S. shale companies could provide some counterbalance to big global market swings, although that flexibility hasn’t been fully tested in a major market downturn. Big cuts have left the industry with 930 fewer rigs, a 58% reduction from their 1,609 peak in October, according to Baker Hughes Inc., which tracks drilling activity.........................................Full Article: Source
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