Citadel Seeks US Shale Oil Assets Amid Global Market Volatility

Citadel, the hedge fund giant founded by Ken Griffin, is seeking to expand its presence in the US oil industry. According to sources, the firm has held talks with private equity firms that own exploration and production companies about buying oil-weighted assets.

The approach comes as crude prices spike due to tensions in the Middle East, making US oil and natural gas assets more attractive to investors. Citadel was among the bidders for WildFire Energy, which was ultimately sold to Magnolia Oil & Gas for $4.06 billion.

Citadel's interest in buying physical production assets is not new; the firm has been expanding its ownership of such assets to complement its trading business. Owning oil-producing assets can serve as a natural hedge for financial firms that trade commodities through futures and derivatives, as the physical barrels they produce tend to gain value in the same market conditions.