OPEC's agreement effectively sets a floor on crude prices at a level where U.S. shale producers can make money and drill new wells. Fred Katayama reports.
OPEC's deal to cut oil production is lifting the prospects for U.S. producers of shale oil. That agreement effectively sets a floor on crude prices at $50 a barrel. That's the level at which U.S. producers can make money and drill new wells. Mizuho Securities director of energy futures Robert Yawger: SOUNDBITE: ROBERT YAWGER, DIRECTOR OF ENERGY FUTURES, MIZUHO SECURITIES, (ENGLISH) SAYING: "You'll see folks return to those spaces and finish off some of those rigs and start to drill new ones also. so yes, I would tend to say that the price target for me would be, a really good price target is $50 bid at $60." Crude prices had fallen more than 70 percent since mid-2013 before recovering this year. During that time, big shale companies cut costs and found new ways to extract more oil through fracking rock. Shares of shale oil producers like Apache and Anadarko Petroleum extending their huge gains from Wednesday in early trading Thursday.