RE:Hedging Oil2018 wrote: I remember bte having torque when wti raised significantly. Is hedging holding it back?
The path of a stock price is like the path of While E. Coyote. When he goes over the cliff, he just hangs in the air. Similarly, hedges and positive sentiment keep a stock price up, which should really be dropping. When he straps on a helium filled balloon, he also does not ascend right away. So today we have hedges and sentiment working against us and the SP is in no rush to rise. So for the same WTI, we have half the stock price of about a year ago. SP lags a year or two.