Popular News From Popular Sites: Analysis - Oil price declines have small-cap shale investors scrambling

Thursday, October 30, 2014

Analysis - Oil price declines have small-cap shale investors scrambling

Tankers are seen outside Tesoro's Los Angeles oil refinery in Los Angeles, California By David Randall NEW YORK (Reuters) - Plummeting oil prices are pushing some of the small-cap companies which flourished as part of the U.S. Concerns about slowing growth in Europe and a stronger dollar have helped push the price of light crude oil down about 25 percent since June to about $82 a barrel, creeping closer to the average marginal cost of crude production of about $73 a barrel for U.S. "The market is selling all of these companies, even if it's clear that $75 a barrel oil is not going to affect every company the same," said Mike Breard, an analyst who works on the Hodges Small-Cap fund, part of Dallas-based Hodges Capital. The high price of oil over the last decade was largely behind the push to mine shale oil through fracking, a controversial technique that uses high pressure to capture gas and oil trapped in deep rock.




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