FENY - Shale firms hold back on hedging despite this year's oil price rise - Reuters

imaginima/E+ via Getty Images U.S. shale producers have promised to maintain spending this year even during rising crude oil prices, and their restraint has extended to their hedging strategies, Reuters reports. Shale companies typically increase production and add to hedges when oil prices railly, eager to lock in profits, but according to Reuters, the swiftness of the post-pandemic rally has caused the firms to back off from hedging after a flurry of activity in early June. The 53 oil producers tracked by consultancy Wood Mackenzie have hedged 32% of expected 2021 production volumes, less than the same time a year ago. Short positions among producers rose to the highest since 2007 by mid-June, according to the U.S. Commodity Futures Trading Commission, but WoodMac says those positions have declined, as producers are more likely to keep remaining 2021 production unhedged and sell at current prices while focusing hedges on 2022. Oil

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Shale firms hold back on hedging despite this year's oil price rise - Reuters