Oil producers in the United States are not hedging enough future production while oil prices trend higher, Goldman Sachs has warned . According to the investment bank, drillers were now focusing more on shareholder returns and improving cash flows than locking in future prices in a bid to make sure they don’t get burned as badly as in 2014 if prices were to crash again. “We saw a slight uptick in 2019 hedged oil production with 31% of 2019 oil production (vs. 28% with our previous update) hedged at an average price of $57.50/bbl,” Goldman analysts said in a note to clients earlier this week, adding “2019 hedged oil/liquids production is below historical averages post-4Q earnings update. We also note that 2020 hedges remain modest—only 6% of expected production is hedged vs. 4% post 3Q18 results.” Indeed, U.S. drillers are becoming more cautious. Rig counts are falling and even […]