U.S. oil prices slumped into negative territory less than a month ago as storage space fills up fast. And yet it appears that some producers are ready to start drilling again the moment WTI reaches a certain level. Interestingly enough, this level is below most companies’ breakeven price. Bloomberg reported this week that companies, including Parsley Energy, Centennial Resource Development, and Diamondback Energy, were ready to reverse the production cuts when prices rose to $24 (for Centennial) or $30 (for Parsley). It sounds counterintuitive when demand is still severely depressed and the inventory overhang is enormous. But some producers have little choice. They have a debt to repay. Wood Mackenzie reported this week that oil drillers in the Lower 48 faced repayments of more than 50 percent of their principal debt by 2025. To repay this debt, they need cash–cash that is hard to come by right now. Banks […]