Affected by the global energy crisis and high natural gas prices, international oil demand has surged, which in turn has pushed up international oil prices. As of October 25 this year, international oil prices closed at US$83.68 per barrel. On that day, US oil prices also hit the US$85 mark. Rising oil prices are good news for oil producers, but U.S. shale oil producers are having trouble laughing.
According to the latest media reports on Tuesday (October 26), the U.S. shale oil production giant Pioneer Natural Resources said, Currently, international oil prices are rising rapidly. In the third quarter of this year, the company lost US$501 million in natural gas and oil hedging transactions. According to statistics, Pioneer Natural Resources’ cumulative losses from hedging transactions in the first three quarters were as high as US$2.02 billion, of which US$1.3 billion was due to losses from oil hedging transactions.
Why does this happen? That’s because oil prices were affected by the epidemic last year and once fell to -$40/barrel. Some shale oil companies were not optimistic about the prospects of oil. In order to protect their own interests, they signed hedging agreements in advance. This is the so-called “put and buy” .
Who knew that oil prices would “rebound” first, driven by the global economic recovery. Seeing that this wave of gains gradually slowed down, just as U.S. shale oil companies were preparing When he breathed a sigh of relief, the global energy crisis ensued and international oil prices continued to rise. This really surprised shale oil producers who were bearish on oil prices.
It seems that if these shale oil producers want to stop losses, they can only hope that oil prices will turn from rising to falling, and the rise and fall of oil prices are closely related to the supply of oil. related. On this issue, both the United States and Japanese officials have urged OPEC+ to produce more oil to calm international oil prices. However, OPEC+ ignored this and insisted on increasing production by only 400,000 barrels per day per month. Such a decision by OPEC+ It is undoubtedly a heavy blow to these shale oil producers.
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