Raw Material Supply Crunch Hits U.S. Shale Oil

As the prices of steel, cement and other raw materials climb higher and higher amid tightening supply, drillers in the U.S. shale patch are facing higher production costs, Bloomberg reports, citing Citigroup analysts. Benchmark steel prices have gained as much as 60 percent in the year to date and a whopping 200 percent over the past 12 months, Barron’s reported last week. The rally was driven by the economic rebound in the United States, but the report noted that prices could not stay too high for too long, not if they are above the cost…