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After two years of oversupply and pumping without limits sent oil prices tumbling, OPEC’s unexpected deal last month to cut production was the gift the industry needed.
Now, the question is how soon will OPEC resume drilling? Prices are close to levels where major companies said they could start investing again after cutting thousands of jobs and billions of dollars in spending, Bloomberg reports.
“After all the hell we’ve had, there should be a pickup now,” says Dogma Capital portfolio manager Danilo Onorino. “The industry has been damaged in the past two years and things need to start improving.” But before any serious investing can begin, experts say oil’s recent rally above $50 a barrel needs to be sustained. [Bloomberg]
