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Chevron Will Discontinue Oil Hedging Once Hess Deal Is Complete
Chevron Corp. said it will no longer use put options to hedge the crude oil production it’s acquiring from Hess Corp. once the deal completes. Hess is one of a handful of major US oil players that still participates in the options market to guarantee a minimum price for its barrels. In its most recent earnings report, published in July, the company had contracts in place that locked in $70 a barrel for about 80,000 barrels a day of WTI production, and $75 for about 50,000 barrels of Brent production for the rest of this year. The move will be the latest retreat from a US driller in the hedging space. In the first ... (full story)