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Hold That Drill: Why Wall Street Wants Energy Companies To Pump Less Oil, Not More

Hold That Drill: Why Wall Street Wants Energy Companies To Pump Less Oil, Not More
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Why Wall Street Wants Energy Companies To Pump Less Oil, Not More : NPR

Apu Gomes/AFP via Getty Images hide caption toggle caption Apu Gomes/AFP via Getty Images Oil pump jacks operate at dusk in Long Beach, Calif., on April 21, 2020. After getting burned by the oil industry s previous boom-and-bust cycles, Wall Street now wants energy companies to pump less crude, not more. Apu Gomes/AFP via Getty Images Oil prices have risen sharply over the last few months. Normally, that s a recipe for a drilling frenzy from U.S. oil producers. But something strange is happening, or rather, not happening. U.S. producers are actually being restrained at the moment, says Helima Croft, global head of commodities strategy at RBC Capital Markets. They are trying to be disciplined.

Hold That Drill: Why Wall Street Wants Energy Companies To Pump Less Oil, Not More

Apu Gomes / AFP via Getty Images Oil prices have risen sharply over the last few months. Normally, that s a recipe for a drilling frenzy from U.S. oil producers. But something strange is happening, or rather, not happening. U.S. producers are actually being restrained at the moment, says Helima Croft, global head of commodities strategy at RBC Capital Markets. They are trying to be disciplined. Oil companies are under a lot of pressure to keep their production down. And the call is coming from inside the house: it s oil investors who are pushing for companies to pump less oil.

Hold That Drill: Why Wall Street Wants Energy Companies To Pump Less Oil, Not More

Hold That Drill: Why Wall Street Wants Energy Companies To Pump Less Oil, Not More
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Hold That Drill: Why Wall Street Wants Energy Companies To Pump Less Oil, Not More

Hold That Drill: Why Wall Street Wants Energy Companies To Pump Less Oil, Not More
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