Shale Producers Hedge At Much Lower Prices

Shale oil producers are hedging again – this is the latest
message coming from investment banks and analytical firms,
according to Bloomberg. After hedging largely died down when WTI
fell into a bearish market in June, now the risk-curbing activity
is again on the rise. There is, however, a difference from the last
hedging spree that took place after OPEC and Russia struck their
output cut deal. Now, some E&Ps are hedging at prices as low as
US$45 a barrel. Last December, shale boomers rushed to lock-in
higher prices for their future…

Shale oil producers are hedging again – this is the latest
message coming from investment banks and analytical firms,
according to Bloomberg. After hedging largely died down when WTI
fell into a bearish market in June, now the risk-curbing activity
is again on the rise. There is, however, a difference from the last
hedging spree that took place after OPEC and Russia struck their
output cut deal. Now, some E&Ps are hedging at prices as low as
US$45 a barrel. Last December, shale boomers rushed to lock-in
higher prices for their future…