Hit by low prices, US drillers keep oil underground
Traders buy oil in oversupplied market and save it to lock in profits at higher prices later
Sat, Mar 07, 2015 - 5:50 AM
BETTER WAIT THAN LOSE: From North Dakota to Texas, there are more than 3,000 wells that have been drilled but not tapped. Waiting gives producers such as Apache a better chance of receiving a higher price.
OIL drillers in the United States expecting prices to rebound after the biggest drop in six years have come up with an alternative to storing their crude in tanks: They're keeping it in the ground.
It's a new twist on an old oil trading technique, known as a contango...