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US shale hedging losses may exceed $10bn: Rystad

OIL

US shale hedging losses may exceed $10 billion if prices remain around 100$/bbl according to Rystad in a note.

  • Record profits and cash flow are likely to cushion the impact
  • If oil prices fell below $65 next year, hedging activity would be a net earner for operators, Rystad said.
  • “Operators have been frantically adapting their hedging strategies to minimize losses this year and next. As a result, we may not have seen peak cash flow in the industry yet”.

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