Wednesday, April 13, 2022
When it comes to drilling new wells, most U.S. companies have taken a vow of abstinence for the past two years. With oil prices holding above $100 a barrel, those vows get harder to keep. Last week's rig count showed a large jump in rigs in the U.S., and new data on permits in one key U.S. basin show that activity is ramping up. The apparent shift is notable because it could signal that an increase in production is coming in the second half of the year and 2023, which would weigh on oil prices, and possibly on stocks. Prices were up on Wednesday, with West Texas Intermediate crude futures rising 2.3%, to $102.86 a barrel, though they have declined from highs above $130 in the early days of Russia's invasion of Ukraine.
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