The Oil Market's Hidden Signals Show U.S. Producers Are Hedging Again
- BNP Paribas, PVM see producer hedging as prices near $50
- Shale companies not backing away from large output targets
Aviva's Diebel Sees Oil Moving Lower Over the Summer
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Look under the hood of the oil market and one thing becomes apparent -- shale producers seem to be hedging again.
Demand for the contracts that producers use to guarantee price levels soared after 2018 West Texas Intermediate crude returned to $50 a barrel. At the same time a raft of trades were reported to U.S. regulators last week that showed some producers hedging at levels as low as $45 a barrel, according to data compiled by Bloomberg.