Oil hedging losses hit SemGroup

SemGroup sold short positions on Nymex futures to hedge its 500,000-barrels-per-day exposure against a fall in crude prices. SemGroup was unable to cover its margin calls after the price of crude rose from around $96 at the beginning of 2008 to an all time high of $147 on 11 July.

On 16 July it transferred its Nymex trading account to banking firm Barclays, and incurred a further $850 million in losses on 17 July when its over-the-counter hedging program was marked to market, according to co