Forward U.S. oil prices for 2018 have climbed back above $50 per barrel, a level that should be high enough to stabilize drilling activity over the next two months. But if prices continue their current upward trend, shale firms will almost certainly interpret that as a sign to increase output and begin ramping up their drilling programs again. Shale drilling has proved very sensitive to changes in the value of West Texas Intermediate (WTI) crude, especially the forward prices shale firms rely on to hedge production and reduce their risks. Between February 2016 and January 2017, the progressive increase in forward prices encouraged shale producers to boost output by hiring extra drilling rigs ( tmsnrt.rs/2jsXK7g ). The number of rigs drilling for oil, which had been falling during the […]