A pumpjack brings oil to the surface in the Monterey Shale, California, U.S.  April 29, 2013.  Photo: Reuters, Lucy Nicholson
A pumpjack brings oil to the surface in the Monterey Shale, California, U.S. April 29, 2013. Photo: Reuters, Lucy Nicholson
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Oil drillers drag down US indices

The current price of US$48 is right about at the point where large scale shale production turns profitable

March 14, 2017 10:52 PM (UTC+8)

High-beta oil companies are dragging down the S&P 500, with Marathon, Chesapeake, Devon, and Transocean accounting for the largest point drops in the broad index. Marathon is down by 7%. Oil is “cuspy” at the current price of $48; that’s just the level at which a significant amount of shale production turns profitable.

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