Financial Market: Producers Go Naked at Higher Oil Price

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When crude oil prices fall below $70, producers rush to get cover and hedge production forward to protect their cash flow. With prices over $70, and especially over $100, producers want to be more exposed to the oil price in the spot market — or, as they say in the trade, they prefer to go naked. The tipping points are more or less the same for both Brent and West Texas Intermediate (WTI).

Oil Futures and Derivatives, Crude Oil, Oil Spot Markets, Oil Forecasts, Oil Prices
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