Oil Rally Prompts Caution: U.S. Drillers Pause Expansion

Oil prices are high, but U.S. drillers are holding back on expansion, choosing to repair balance sheets rather than drill more wells as geopolitical uncertainties, particularly the Strait of Hormuz disruptions, weigh on investment plans; a Dallas Fed Energy Survey shows profitability thresholds but only about 21% of operators expect to meaningfully increase drilling this year.