Oil Hedging Volumes Hit New Records as Us Producers Rush to Lock in SOARING PRICES

Hedging Activity Spikes as Producers Lock in Higher Pries

Us Crude Futures Jump after Israel Strikes Iran

Oil producers need $ 65 a barrel on average to profitable drill

HUTON, – Israel’s Surprise Attack on Iran Last Week Had Oil Pries Spiking which us producers scrambleing to lock in the price Gain, Driving Record Hedging Volumes that will help shields Future price swings.

West Texas Intermediate Crude Futures Rose Further This Week, Closing on Friday at Around $ 75 A Barrel. This prompted us producers to Secure Additional Price Gains Through 2026, Having Alredy Driven Hedging Activity on the aegis hedging platform to a record high last friday.

Aegis hedging, which handles hedging for roughly 25-30% of us output, according to internal estimates, Saw a record Volume and Great Number of Trades Done on Its Trading Platform on 13. The us Produces some 13.56 Million Barrels per day of oil, according to the latest government figures.

Us Crude Futures Jumped 7% on June 13 to Around $ 73 A Barrel, After Israel Struck Iran, The Larges Single Day Rise Since Since July 2022.

Pris Had Been Hovering Under Where many Producers Bold Opt to Hedge, Hitting a Four-Yaar Low of $ 57 a Barrel in May as OPEC STARED HIKED HIKING OUTUTED HUTPUT HUTUT HUTUT PRESED OUTPUT US PRESED TRAMP WAGED A A TRADE The Jump on June 13 Gave Traders An Opportunity to Lock in Pries for their Barrels not Seen in Several Weeks.

When pris react to risk-rested events-such as israel’s attack on ran-as opposed to supply-demand fundamentals, the front of the oil futures curve Rices more than Later Contracts, Infrink Whather Producers Opt for Short- Or long-term hedging strategies, according to AEGIS HEDGING.

“In this case it was probally a Six-month effect,” said matt marshall, President of Aegis Hedging.

Oil producers need a price of $ 65 a barrel on average to profitable drill, according to the first Quarter 2025 Dallas Federal Reserve Surveyy. Us Crude Futures Closed Below $ 65 every day from april 4 to June 9, according to lseg.

“We Stay disciplined and pay close Attention to Market Volativity. Reserve-based lending covenants, “said rhett benett, Chief Executive at Black Mountain Energy, A Producer with Operations in the permian basin.

A Reserve-Based lending Covenant Reefers to a Type of Loan Producers Can Obtain, Based on the Value of the Company’s Oil and Gas Reserves.

“Producers Recognized that this could be a fleeting issue and so they sad Below market, they opted to be aggressive and lock in, “said Aegis’ Marshall.

AEGIS ‘Customers often Have Hedging Policies in which a certain amount of production must be heedged by a certain time in the year.

“Producers Had two months of Hedges that they needed to catch up on,” Aegis’ Marshall Said.

Traders on June 13 exchanged the most Texas Intermediate Crude Oil Call Options Since January on the chicago mercantile exchange, expecting more UPSIDEDE to price.

A Total of 33,411 Contracts of August-2025 $ 80 call options for wti crude oil was traded that day on a total trading volume of 681,000 Contracts, Marking the Heighest Volume for these options According to cme group data.

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