Monday, December 1, 2014

West TX Oil Back Below $69 after Rebound

U.S. crude futures slipped below $69 a barrel on Tuesday after a rebound from five-year lows on signs that shale oil producers are starting to slow down output.

U.S. crude futures for January delivery slipped 12 cents to $68.88 a barrel by 0013 GMT. The front-month price hit a five-year low at $63.72 on Monday before rebounding to post a 4.3 percent gain at settlement.  Brent crude closed 3.4 percent higher on Monday at $72.54 a barrel after five straight sessions of losses.

U.S. oil producers have been racing at full-speed to drill new shale wells in recent years, even in the face of lower oil prices. But new data suggests that a much-anticipated slowdown in shale country may have finally arrived.

CNBC

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