Dallas Fed: US oil companies view OPEC agreement ‘skeptically’

According to a report from the Federal Reserve Bank of Dallas, as cited by bizjournals.com, fewer US oil and gas companies have filed for bankruptcy in Q4 2016, but industry officials are skeptical of the agreement reached between OPEC countries last month.

Dallas Fed researchers noted that a rise in oil prices since participating OPEC countries agreed to cut their production has “provided a lifeline” to struggling companies. But the impact of the OPEC agreement on the US drillers “will likely be muted in the near term.”

They further added, “Industry contacts view the agreement skeptically, which may deter firms from drilling substantially more than what is already planned.”