LONDON: US shale oil companies are using the post-Opec rally to hedge their oil price risk for next year and 2018 above US$50 a barrel, bankers, merchants and brokers said, pushing the forward oil curve upside down.
The rush to hedge - locking in future cash flows and sales prices - could translate into higher US oil production next year, offsetting the first output cut by the Organization of Petroleum Exporting Countries in eight years.
Already a subscriber? Log in.
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!