Under-hedged U.S. Shale Patch Exposed To Falling Oil Prices

The oil price selloff appears to have run out of steam with oil prices finding a floor over the past week. Brent crude for June delivery was trading at $82.44 per barrel in Wednesday’s intraday session, a sharp decline from $90.10 a month ago while the corresponding WTI contract was trading at $78.17 per barrel down from $85.41 over the timeframe. Demand concerns coupled with softening geopolitical risk premium have been blamed for the pullback, with commodity analysts at Citi warning that oil prices could fall to the 70s range in…