U.S. is witnessing the highest spike in crude oil prices for over two years, with the U.S. Shale producers limiting their contributions.
Shale producers have incorporated a very restricted number of extra rigs and limited their production with an incline focused on elevated prices and profits. The current scenario observes the surge in oil prices to be solely propelled by the reducing responsiveness of the Shale sector.
Growth in the number of active rigs nailed 3.5 per week in the last 15 weeks, a significant drop from the average growth of 6.2 per weak achieved over the 20 weeks prior. The number of active rigs was 359 last week, which was a massive decline than the number of active rigs in January, 670, and 825 in April 2019. These records indicate the growth to be slower in the late 2020 and initial phase of 2021.