OPEC Can Make Those Shale Hedges Lose Money At 55 Dollars Per Barrel


We discuss the idea that nobody else has thought of regarding how OPEC will actually hurt the shale Industry by making all those financial hedges punitive, i.e., lose money above $52 a barrel on the front month with corresponding forward curve hedges all losing money for shale producers. 

Shale producers all put on "Financial Hedges" which start turning negative once the oil market busts out to new highs. So they will make money on their production sales, but lose money on their financial hedges as these forward hedges are strictly financial in nature. Thus, OPEC can stick it to the shale Industry by raising prices above expectations.

Video length: 00:09:57
 

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