US producers rely on hedging to protect cash flows

摘要

US oil producers are counting on increased price hedging this year to protect cash flows, as they advance shale oil investment plans in the face of flatlining crude prices. But a lack of hedging cover next year may stunt plans, unless prices rise. US upstream independents will report their first-quarter results in the coming weeks, providing insight into their spending plans for remainder of this year and next. Their comments will be weighed against a fall in benchmark Nymex WTI prices last month, when they were, for the most part, below $50/bl and were as much as 15pc lower than a January high.