| Cash-strapped U.S. shale oil producers are facing another sharp sell-off in a 18-month-old crude slump with reduced hedging protection, risking a severe hit to earnings if prices fail to recover. A Reuters analysis of hedging disclosures from the 30 largest oil producers showed the sector as a whole reduced its hedge books in the three months to September.
"Producers have survived 2015 as they benefited from large reductions in service costs while having a significant amount of production hedged at high prices," said John Arnold, the Texas billionaire formerly at hedge fund Centaurus Advisors...............................................Full Article: Source |