U.S. shale companies hedges were inadequate for oil price crash
Oil prices have
plunged so much that even U.S. shale producers who have paid for
the industry’s version of income insurance must deal with big
holes in their budgets.
Crude oil prices have crashed about 50% this year, hit by
the coronavirus outbreak and the surprise price war that erupted
last weekend between Saudi Arabia and Russia. The U.S. crude
benchmark on Thursday closed at $31.50 a barrel, far below
plunged so much that even U.S. shale producers who have paid for
the industry’s version of income insurance must deal with big
holes in their budgets.
Crude oil prices have crashed about 50% this year, hit by
the coronavirus outbreak and the surprise price war that erupted
last weekend between Saudi Arabia and Russia. The U.S. crude
benchmark on Thursday closed at $31.50 a barrel, far below
Posted by Reuters
