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US oil drillers exposed in three-way hedges as crude dips below US$30

Such hedges risk worsening cash shortfall for firms trying to survive the oil price rout

Some oil firms used a three-way hedge that doesn't guarantee a minimum price if oil falls below a certain level. Three-ways can be cheaper, but they leave drillers exposed to sharp declines.

New York

OIL at US$30 a barrel is blowing a hole in the insurance that US shale drillers bought to protect themselves against a crash.

Companies including Marathon Oil Corp, Noble Energy Inc, Callon Petroleum Inc, Pioneer Natural Resources Co, Rex Energy Corp and Bonanza Creek...

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