Oil producers selling more of future output

New York

OIL producers are taking advantage of the biggest monthly price increase since 2009 to sell more of their future output, threatening to slow the rally.

New York-traded crude for next-month delivery gained 25 per cent in April on signs a record drop in drilling rigs is starting to reduce production, easing the biggest US oil glut in 85 years. December 2016 contracts were up just 8.7 per cent in that period.

Producers from Whiting Petroleum Corp to WPX Energy Inc are hedging more output to lock in sales at higher prices. An increase to US$65 for an extended period may add an extra…