$60 is the New Magic Number for Shale Oil Drillers

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From Bloomberg:
For America’s shale drillers, the tipping point to boost production looks to be $60 a barrel.

It’ll take a sustained run above that price in New York before drillers rethink their spending plans for 2018, according to JPMorgan Chase & Co. Until then, activity looks to be “range-bound," said analysts led by Arun Jayaram in a Wednesday research note detailing their talks with operators in the Permian shale basin in Texas and New Mexico.

Among Permian explorers, “none expected to materially alter course as long as WTI stays in the $45-55 range," despite OPEC’s decision last week to extend their own production cuts through 2018, Jayarum wrote. A one- to two-quarter run above $60 was “the consensus catalyst for another leg higher."

That said, some explorers say they plan to add “a rig here or there into next year, with very few mentions of rig drops," according to the report.
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