The rising costs of extracting oil are propping up New York futures for the years ahead, even as prices sink for crude that will be delivered over the rest of this year.
The futures contract closest to delivery on the New York Mercantile Exchange tumbled 10 percent in the past three months to below $70 a barrel as investors fled riskier assets and the December 2015 contract lost 4 percent. At the same time December 2018 futures remain above $90 a barrel, suggesting analysts are less pessimistic about the long term. The U.S. Labor Department’s index for oil- and gas-field machinery costs rose in April for the first time in six months.
Full story: Rising Drilling Costs Mean $90 Crude in 2018