Mar. 17 at 3:04 PM
Rystad Energy: If WTI Crude, the US benchmark, stays at very high levels & avgs
$100 per barrel for 2026, US producers are poised to reap an additional
$63.4B in cash flow
Approximately 20-25% of total 2026 production was hedged entering the year, a sharp decline from the 50%+ levels seen in 2020
Following military escalations in the Middle East & Brent crude hitting nearly
$120/bbl, there has been a record surge in activity. Firms like AEGIS Hedging reported that nearly +25% of their clients were executing orders immediately to lock in these premiums
While producers w/ mainly US ops will see a windfall from the price spike, international supermajors are counting losses from force majeures, shut-ins, & lower production
US shale will take excess cash to pay down debt & boost shareholder returns & not increase cap-ex - reluctant to boost production b/c price spike may not last
GasBuddy: Americans to spend on Sunday
$300M more on gasoline than they did 30 days ago
$XLE $DVN $FANG $SU $OXY