Eight major hedge funds have cut their stakes in 10 of the biggest Permian Basin-focused US shale producers by 14% to $2.66 billion in the first quarter amid concerns that the Permian drilling frenzy will trigger another oil price crash. Low oil prices, together with soaring service costs and land prices in the Permian, are putting growing pressure on drillers' profit margins, according to Miller/Howard Drill Bit to Burner Tip Fund portfolio manager Michael Roomberg.
US shale drillers fall out of favor with hedge funds
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