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Magic number for a new shale surge: USD 60 a barrel, JP Morgan says

According to JP Morgan, US shale producers will not rethink their budgets and increase production until the WTI oil price has stayed above USD 60 for a certain period of time.

Photo: /ritzau/AP/LM Otero

For America's shale drillers, the tipping point to boost production looks to be USD 60 a barrel.

It will 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.

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