Brokers' take

Oil and gas | NOT RATED

Shale oil companies are ready to play chicken with supply and demand again. Roiled by a year that began with crude at a 12-year low and ended with a surprise Opec agreement boosting prices, US producers including Continental Resources Inc and Pioneer Natural Resources Co are promising not to overreact - or overspend.

The temptation will be strong: a recovery in prices has already spurred drilling activity in the United States to the highest since January.

If oil passes US$70 a barrel, the United States could start pumping out an extra million barrels a day, offsetting much of the planned cut from the Organization of the Petroleum Exporting Countries, according to a Citi…