U.S. oil producers may hold off on cashing in on higher prices

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Rising oil prices driven by the Middle East conflict are increasing profits for U.S. oil producers, but uncertainty over how long the price surge will last is making companies cautious about expanding production.

It’s hard to keep track of the economic repercussions of the War in the Middle East – oil prices have been rising and falling based on the latest news. Whether prices are $100 or $80 a barrel, they’re still higher than they would be without any war at all, and that means more cash in hand for U.S. oil producers.

But will that money go towards increasing U.S. oil production?

When oil prices move higher, it’s often a signal to drill, baby, drill. But this case is different, according to Dan Pickering, chief investment officer at Pickering Energy Partners.“

This is a most likely a transitory event, with the war in Iran, and prices [are] likely to come back down,” he said.

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U.S. oil producers may hold off on cashing in on higher prices

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