Oil prices over the $53 a barrel mark are spurring more shale producers in the U.S.. to hedge their bets by locking in prices for future sales.
Increased oil prices might have sparked some interest in renewed drilling but more explorers are looking to the futures market. , Analysts don’t believe the U.S. oil production will see much of an increase in 2021 so producers are looking to hedge their production.
By doing so, they are guaranteed sales of oil at more than $50 a barrel even if prices take another drop, reported Reuters.
Click here for the Reuters story.