Market Insider

Oil at $60, get ready for 'frack counterattack'

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U.S. oil prices are heading into a sweet spot that could spur the fracking industry to crank up some of the drilling it shut down when crude prices collapsed.

West Texas Intermediate oil futures for June rose above $60 per barrel Tuesday for the first time since December. That sparked expectations the price could go even higher, if U.S. oil inventory data Wednesday show an expected draw down in oil stored at the Nymex physical hub in Cushing, Oklahoma.

"If oil prices stabilize above $60, I believe we are going to resume production growth in the second half of the year. More companies will drill more wells," said Fadel Gheit, senior energy analyst at Oppenheimer.