1) “Saudi Arabia needs to be assured that U.S. shale wouldn’t bounce back quickly,” said Bob McNally, president of consultant Rapidan Group in Washington and a former senior oil official at the White House.
2) Some shale companies may not be inclined to dive back in. Bill Thomas, chief executive officer at EOG Resources Inc., the largest landholder in Texas’s Eagle Ford shale formation, told attendees at an industry conference in Houston last week that his company won’t start boosting output the first time oil hits $60 a barrel.
"We’re going to make sure the market is in good shape, it’s balanced, and we’ve got a future," Thomas said. "We don’t want to ramp it up and drive the price of oil down again."
MRM Price at posting:
31.8¢ Sentiment: Buy Disclosure: Held
