From Catherine Ngai, Reuters:
“When oil prices rocketed towards $60 a barrel this fall, U.S. shale producers hedged more barrels of oil during the quarter than in at least three years, which could help propel the country to record crude production by next year.”
”Citigroup analysts said the third-quarter hedge ratio – the percentage of production where shale companies have locked in future sales – for 2018 jumped from 12 percent to 27 percent. For the same period in 2015 and 2016, producers had locked in 15 and 18 percent of the coming year, they said.”
The article suggests this is a “guarantee” of 10 mbd production in 2018, which is in line with recent EIA estimates:
”U.S total oil production is expected to rise by 780,000 bpd to 10.02 million bpd next year, which would be a new annual record, according to the U.S. Energy Information Administration (EIA). Traders estimate that growth could be as high as 1.2 million bpd, with at least 500,000 bpd to 600,000 bpd out of Texas’s prolific Permian basin alone”
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