Bloomberg makes the point that hedgers are hedging by looking at this chart:
“The hedging pressure triggered violent movements across the price curve. As shale firms sold oil for delivery next year and early 2018, the shape of the curve flattened. “The curve is screaming producer hedging,” said Adam Ritchie, founder of consultant AR Oil Consulting and a former trading executive at Caltex Australia Ltd. and Royal Dutch Shell Plc.”
“βThe longer dated flattening in the futures curve does indeed reflect to a large extent increased producers activity, hedging on the back of the pop up in spot prices that followed the announcement of an output cut by OPEC,β said Harry Tchilinguirian, head of commodity strategy at BNP Paribas SA.”
And here is Dec17/Dec18:
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