Before the Crash, Oil and Gas Drillers Pounced on Price Spike

Before the Crash, Oil and Gas Drillers Pounced on Price Spike

(Bloomberg) — Shale drillers engaged in record hedging amid soaring energy prices in the days and weeks preceding the worldwide commodities crash.

Oil and gas companies hedged at record levels prior to commodities sell-off

Oil and gas producers moved quickly to lock in profits as energy prices surged ahead of a sudden global commodities sell-off, Bloomberg writes.  U.S. shale drillers engaged in record hedging activity in January, capitalizing on price spikes driven by a polar vortex and escalating geopolitical tensions involving Iran.  Data from AEGIS Hedging Solutions shows gas hedging hit its busiest week on record, while crude hedging reached its strongest lev…