Harold Hamm, CEO of Continental Resources, recently had these words of advice for fellow American shale producers: “Save that money. Avoid selling that production in this poor market and wait for service costs to fall [further] before completing those wells.”
Crude oil prices moved higher after the EU upped its growth forecast the day after the Saudi Foreign Minister Abdel Jubeir said the Saudi led coalition would consider ending airstrikes in Yemen for humanitarian reasons.
Even with the recent rebound in the price of crude oil, don't look for production cuts to stop. Oil is breaking out as it is clear that crash in oil prices significantly changed the fundamentals and the future production growth curve.