- Permian operators began hedging oil prices at $40/bbl and continue at $50/bbl with additional hedging from Eagle Ford names.
- Increased volumes of hedging provide a short term ceiling to oil prices, at least until operators have enough revenues guaranteed to satisfy banks.
- Given the large number of barrels unhedged through 2016 and into 2017, this could continue for a couple of months, but could take longer if oil prices pullback.
Wednesday, June 22, 2016
Mike Filloon's Tight Oil Update -- June 22, 2016
Summary:
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.