Spurred on by investors, US oil firms keep drilling despite the supply glut

Houston

INVESTORS sent a surprising message to US shale producers as crude fell almost 20 per cent in August: keep calm and drill on.

While most oil stocks have fallen sharply this month, the least affected by the slump share one thing in common: they don't plan to slow down, even though a glut of supply is forcing prices down. Cimarex Energy Co jumped more than 8 per cent in two days after executives said on Aug 5 that their rig count would more than double next year. Pioneer Natural Resources Co rallied for three days when it disclosed a similar increase.