More Export Destinations For U.S. Crude In 2016 03/29/17 •lweb.es/f2697 •bit.ly/2oQhXFR
Due to a surge in oil hedges, the oil-price weakness will not prompt US producers to pull back on drilling. The producers rushed to lock in oil prices above $50 a barrel after the OPEC production cuts announcement in November, and will use hedging gains to help plug any budget deficits caused by sub-$50 spot prices. However, most of the hedges expire by 2018, and oil futures prices must recover before producers can lock in prices over $55 a barrel for next year – a level needed for significant tight-oil production growth.