Fooled by false bottom, most US shale firms skip hedging in Q4

New York

Last October, as US oil prices seemed to be stabilising around US$45 a barrel, some bullish traders chuckled at the notion of US shale firms racing to hedge production at what they thought was the bottom of a 19-month rout.

Now, a handful of producers, such as Anadarko Petroleum, which sporadically hedges in large chunks every few quarters, and, surprisingly, natural gas giant Chesapeake Energy, may have the last laugh.