With the price of oil trading below $33 on Thursday, and early prognosticators saying a practical bottom has been put in, financial stress will remains elevated for independent U.S. oil producers in 2016. The core projection of difficulty in the traditionally over-leveraged oil patch – where an industry has become “accustomed to growing and spending beyond its cash flow” – may provide opportunity for hedge funds with money to lend and an eye for investing in distressed debt when blood is on the street. This is essentially the conclusion of 33 page report from Goldman Sachs, one that considers differing…
Oil Producers Not Well Hedged Going Into 2016
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.