Oil Prices in Mid-$60s Is Profit Red Zone, Quantum Capital Says

Activity is slowing in US oil fields as drillers remain in the crude-price danger zone for profits, according to one of the biggest investors of private operators in the shale patch.

“In the mid-$60s, you get dangerously close to where oil prices don’t really drive appropriate returns for new drilling,” Dwight Scott, who joined Quantum Capital Group at the start of this month as executive vice chairman, said on Bloomberg TV Wednesday. “So, activity in the oil field is slowing; I think that’s a temporary thing.”