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U.S. Crude Firms Now Able to Hedge Locally Rather Than Globally

By Criterion Research
November 8, 2019 -

With rising liquidity in the U.S. oil trading market, upstream firms have begun to be able to place local hedges rather than the older method of hedging on global futures such as WTI and Brent.  This is allowing producers such as Parsley and QEP to manage their risk against shifts in local prices should a pipeline go offline or exports suddenly drop.

After decades of relying on Cushing as a delivery point, producers are gaining more optionality in areas such as Houston and Corpus Christi.  


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Categories
Oil and Gas
Upstream

Commodities
Crude Oil

Tags
Hedges
Production

Regions
Cushing Oil Terminal
Gulf Coast
Houston Ship Channel

Countries
United States

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