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U.S. shale firms more exposed to falling oil prices as hedges expire

Reuters 

By Catherine Ngai and Swetha GopinathREUTERS - Cash-strapped U.S. shale firms scaled back their hedging programs in the first quarter, leaving them more vulnerable to tumbling spot market prices just after OPEC reached a landmark deal to curb global supply.The pullback in hedging was driven by rising service costs and expectations that prices would continue to rally after the Organization of the Petroleum Exporting Countries extended those cuts in May, analysts said. However, rising U.S. production has stymied OPEC's efforts to rebalance markets. Crude oil futures have lost 15 percent of ...

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First Published: Tue, June 13 2017. 17:04 IST
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