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U.S. shale firms miss out on $70 oil after hedging at $55

“The top 25 shale producers will forego about $1.7 billion in combined revenues in the second quarter with oil prices at about $70, according to Denver-based consultancy PetroNerds” writes Midwest Communications Inc for 95kqds.com. West Texas oil currently trades at a discount of $9 to U.S. benchmark futures, a spread that hit $12 earlier in the month.NEW YORK (Reuters) – Many top U.S. shale oil producers are missing out on the rally in oil prices to more than $70 a barrel – because they sold their oil through futures contracts at about $55 last year when that looked like a good deal.Until recently, firms had not hedged the discount because the price of Midland oil and U.S. futures have historically tracked closely together.Producers in west Texas, the nation’s largest oilfield, are now pumping more than 3.3 million bpd, compared with 2.4 million bpd a year ago.
Source: 95kqds.com

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