Tag: Hedging
Surge in oil hedging could worsen US supply glut
$55USD/b for 2018 needed to “organically fund” significant tight-oil production growth Those hoping that recent oil-price weakness will prompt US producers to pull back drilling activity and ease the glut of oil supply may need to keep waiting. Wood Mackenzie’s latest analysis of oil and gas hedging activity shows a recent surge in oil hedges. “Recent […]
Oil is becoming a crowded trade as hedge funds pile in: Kemp
Enormous concentration of hedge fund long positions emerged as important source of price risk in near term By John Kemp LONDON (Reuters) – Hedge funds have accumulated a record bullish position in crude futures and options, betting on further price rises, but the lopsided nature of the positioning has become a key source of risk […]
E&P companies triple 2017 hedging to 24% of production, hedging income set to plummet
Small US E&P peer group continues to have the most hedging and weakest balance sheets North American E&P companies have more than tripled the hedging protection for their 2017 production since April 2016—with 24 per cent of total 2017 production now hedged, according to new analysis from IHS Markit. “Companies hedge their production to provide a […]
Hedging activity maintains high pace set in Q3 – Wood Mackenzie
Producers appear to be rushing to lock in $55/bbl oil for 2017 Oil and gas hedging activity skyrocketed in Q3 to the highest level in a year, according to an analysis by Wood Mackenzie. Will activity climb higher in Q4 as prices break through the US$50/bbl threshold?Wood Mackenzie’s corporate research experts look at the Q3 […]
Oil traders see no market rebalancing until later in 2017: Kemp
Traders are signalling they expect oil demand to exceed supply in 2nd half of 2017, throughout 2018 By John Kemp LONDON – Crude traders expect the oil market to begin tightening and gradually move into deficit, but the shift is not forecast to occur much before the second half of 2017. The expected timetable for rebalancing is […]
US shale firms’ Q1 hedging rush may squeeze margins, spur output
For some oil producers hedging was more of a necessity as they needed them to get bank loans By Catherine Ngai, Reuters As oil prices began recovering from 13-year lows early this year, U.S. shale producers ramped up their hedges against another slump on a scale unseen for at least a year, a Reuters analysis of […]
American oil/gas producers face difficult 2016 as hedging protections end
Large E&Ps hedged just 6% of oil production at $53.85/b, 16% of gas at $3.58 per MCF, making them most exposed of US peer groups As oil prices continue to decline, North American exploration and production companies have hedged just 15 per cent of their total production volumes for 2016, including 14 per cent of […]
E&P hedging down for 2016, high debt producers to suffer – IHS
Good news is many producers now earn same rate of return at $60/b as they did at $90/b, less need to hedge A new report from IHS says that in 2016 oil and gas hedging for North American exploration and production companies will plunge to just 11 per cent of production volumes. As a consequence, many […]
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