From the EIA’s This Week in Petroleum:
“As of the first quarter of 2018, oil companies have also increased the production volumes hedged for the remainder of 2018 and into 2019. Based on company financial statements, 42 of the 46 companies used derivatives such as futures and options to hedge a collective 1.9 million b/d of 2018 production and 0.7 million b/d of 2019 production at weighted-average prices of $52.28/b and $52.44/b, respectively.
Since the end of the first quarter, however, weekly reports from the Commodity Futures Trading Commission have revealed that from March 27, 2018 (the last data point from the first quarter of 2018) through July 17, 2018, commercial hedging positions declined by 89,376 contracts, the equivalent of nearly 90 million barrels (Figure 3). This trend suggests that producers may have financially settled some of their contracts from the first quarter and not added new hedged volumes for 2018 or 2019 in the second and third quarters of 2018.
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