Check this article out, US Companies arent really losing money on the drop in oil prices and some are making money by hedging contracts and short selling, I cant explain this very well so here is a quote from the article: For example, a company that had sold swap contracts to hedge a part of its 2015 production at $90 a barrel - essentially shorting forward oil prices to guard against a drop - could buy them now back at around $57 for a profit of about $33 a barrel. Instead of just pocketing the cash, some companies are using the funds to shield themselves against a further market slide by buying swaps and options pegged closer to current prices. With the December 2015 put option for $60 a barrel now trading at around $9 a barrel, swaps cashed in now could buy a producer nearly four times more protection at that price.
Posted on: Tue, 06 Jan 2015 03:38:41 +0000