Skip to content
Subscriber Only

Oil's Slide Has Hedging Bet Finally Paying Off for U.S. Drillers

  • Contracts edge toward profitability as WTI trades around $55
  • Protection had been a money loser for some Permian producers

The plunge in oil prices may finally make oil producers’ hedging contracts into a financial winner for 2018.

After more than a year of surging prices made the contracts a drag on profits, the slide in West Texas Intermediate crude to around $55 a barrel this month means some of the hedges are edging toward profitability, said Anastacia Dialynas, a Bloomberg NEF analyst.