A few words from Saudi Arabia about OPEC and Russia pumping more sent crude crashing 8%in the span of just a few days. The dramatic sell-off wiped out a chunk of the recent spike above $70 a barrel that was driven by concerns about President Trump’s sanctions on Iran.
Enormous improvements in shale drilling technology have made oil companies more resilient than the last time they faced major volatility. US oil production is soaring and on track to shatter all-time records.
Equally important: The boom-to-bust oil industry is working hard not to repeat mistakes of the recent past. Companies have slashed costs, cleaned up their balance sheets and adopted a more disciplined approach aimed at avoiding expensive projects that can lead to financial trouble.