Oil rout roils E&P and airline hedging strategies

Price dive rewards producers with cautious risk management practices

Oil rig
Many hedging programmes did not anticipate huge oil price plunge

It may be a distant memory now, but for nearly four years, peace and quiet reigned in the oil market. From 2011 up until September of last year, benchmark North Sea Brent crude oil hovered in a price range of roughly $100 per barrel (/bbl) to $120/bbl. Bank commodity desks complained that hedging activity was sluggish, as exploration and production (E&P) firms and other clients were lulled into complacency by a range-bound market. Hedge funds suffered from a lack of trading opportunities, and

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: