U.S. oil companies hedged at least 1.2 million barrels per day of 2018 production (12/20/2017)

Financial statements from the third quarter of 2017 for 47 U.S. oil production companies indicate that they hedged more than 1.2 million barrels per day (b/d) of crude oil at a weighted average price of $49.63 per barrel (b), locking in some of their revenues at a fixed price even if oil prices decline lower than $50/b. Since the end of the third quarter, weekly data from the U.S. Commodity Futures Trading Commission (CFTC) through December 12, 2017, suggest that producers likely increased their hedged volumes during the fourth quarter of 2017. West Texas Intermediate (WTI) crude oil prices reached their highest levels in more than two years in November and December, allowing many producers to hedge their future production at more than $50/b. ... More »