Oil Economy Focus Rapid Review
Oil explorers took advantage of a market rally to lock in prices for almost 1 million barrels a day’s worth of future output. New hedging contracts in the third quarter covered 897,000 barrels a day of annualized production, a 147 percent increase over the second quarter, according to an analysis of 33 companies released Tuesday by industry researcher Wood MacKenzie. The hedging contracts, which allow drillers to lock in future payments of at least $50 a barrel, could make it easier for the OPEC cartel’s American rivals to keep pumping more, no matter which way prices go.
LINK TO THE SOURCE ARTICLE:
Million-barrel oil hedging locks in $50
