Producers tapered oil-hedging activity in Q1 2017. We believe this was driven by general price weakness and the fact that companies were already well-hedged for 2017 entering Q1. Last November, operators rushed to lock in oil prices above US$50/bbl when OPEC announced plans to cut production. Most new hedges in Q1 were on the gas side. Swaps were the most popular type of contract used, accounting for 54% of new derivatives, up from 38% the previous quarter.