- Quickly responding to the near-doubling in oil prices over the past few months, producers are putting oil rigs back to work, says Bjarne Schieldrop, chief commodities analyst at Sweden's SEB Bank.
- The rig count rose by nine last week to 325, rebounding from its lowest level since October 2009.
- Looking 15 months out on the WTI crude curve gives a good level of prices to check for determining the viability of a new shale well, he says, and it's been above $45 for eight weeks. Last year, a rise in WTI crude to $60 was enough to accelerate an increase in rigs. With better technology cutting costs, Schieldrop figures a rebound to $54 would be enough.
- Crude is higher by 1.6% today to $50.48 per barrel.
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