May. 8 at 8:44 PM
Diamondback Energy acquired put options tied to the spread between U.S. West Texas Intermediate (WTI) crude and Brent at roughly -
$42 per barrel for the coming months, according to the company’s quarterly report. The hedge positions the producer to benefit if the United States bans crude oil exports.
The Permian Basin-focused producer bought nearly
$70 million in put options on the WTI-Brent spread for up to 255,000 barrels per day at -
$41.67 per barrel in Q2 2026, and up to 290,000 barrels per day at -
$42.76 per barrel in Q3.
The unusual hedge highlights how oil companies are seeking new ways to protect revenue as tensions with Iran have fueled price volatility that could rapidly impact producer earnings.
The WTI-Brent spread stood at -
$9.29 per barrel on Friday. It widened to as much as -
$20.69 in March amid concerns that the U.S. government could halt crude exports to lower domestic gasoline prices.
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