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Oil prices have rebounded sharply, exposing the fast production decline rates of shale wells. Shale output falls quickly without continuous new drilling, so explorers must keep drilling to sustain volumes.
Fast shale declines mean output may respond slowly to price gains, which could keep crude tight and support energy-linked commodity costs.
bloomberg.comRachel Adams-Heard, Kevin Crowley, David WetheMay 24, 2020After 487 past bullish macro events, Crude Oil (WTI) moved a median +1.0% over 5 sessions (60% higher; middle half -2.0% to +4.0%), and +1.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
