Oil hedging losses hit SemGroup
Tulsa, Oklahoma-based midstream oil company SemGroup has filed for bankruptcy following a $2.4 billon loss on its hedging program on the New York Mercantile Exchange (Nymex).
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
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