Oil Price Surge Sparks Burst of Hedging Among Shale Drillers
The surge in oil futures spurred by the initial missile attacks in the Middle East last week triggered a wave of hedging by producers seeking to lock in the higher prices, keeping some traders up late into the night.
AEGIS Hedging Solutions LLC, a Woodlands, Texas-based firm that helps about 350 oil producers with hedging, handled the largest volume and greatest number of trades in its history on the night of June 12 after Israel struck nuclear sites across Iran, according to President Matt Marshall. Trades lasted until 11 p.m. that night and resumed at 7 a.m. the following day, he said.
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