Hedges ... not just ours.I have been wondering for some time now who hold the other side of the presently successful hedges. About how large is the oils derivatives pool and who is at risk .
This may not be perfectly accurate but I expect it's close enough to answer most of my questions ... FWIW
https://theeconomiccollapseblog.com/archives/plummeting-oil-prices-destroy-banks-holding-trillions-commodity-derivatives
quote ..
It has been estimated that the six largest “too big to fail” banks control $3.9 trillion in commodity derivatives contracts. And a very large chunk of that amount is made up of oil derivatives.
Makes me wonder about Canadian banks involvement.
Add the energy derivatives to the energy high yield bonds and there could be quite a mess.
Makes me wonder if it's not better to get completely away from this sector ... for a while.
How safe are oil hedges?
I would have expected the holders of hedges to be a lot more diverse.
The big banks holding so damn much .... sounds to much like the typical greed one sees and lack of foresight the massive bank bonuses encourage ...