Undersupply gives diversified companies edge, JP Morgan says
Post-Harvey refinery boost to slow as fuel stockpiles rise
In its outlook for the coming year, JP Morgan Chase & Co. says it expects U.S. shale production to continue rising if West Texas Intermediate crude prices hold steady above $60 a barrel. But even as companies keep drilling, they’ll be hard-pressed to secure enough frack crews, adding "another wrinkle to the already tight labor and supply chain equations," the report said.
Meanwhile, refiners may have a hard time sustaining the gains they saw in 2017 after Hurricane Harvey shuttered some capacity and the spread between Brent and WTI prices widened, the report said. That’s due in part to rising fuel stockpiles. The report identified diversified companies, such as Andeavor and Marathon Petroleum Corp., as preferred picks.