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Crude Surges Beyond $61-a-Barrel Trigger for Shale Expansion

  • Oil futures at three-year high may spur new output bump
  • Dallas Fed surveyed energy chiefs about price sensitivities
Bloomberg business news
Francisco Blanch, head of commodities research at Bank of America Merrill Lynch, sees a range-bound oil market.(Source: Bloomberg)
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Oil approached $62 a barrel for the first time in three years, surpassing a crucial threshold for spurring new shale drilling.

Wednesday’s 2.1 percent jump in New York-traded futures delivered exactly what the largest cohort of oil executives in a Dallas Federal Reserve survey last month said they needed to justify more shale exploration: prices above $61. If crude continues to climb and crosses the $66 mark, even more corporate chiefs indicated they’re ready to pile in, according to the survey.