RE:RE:RE:If WTI gets well over $100 I would hedge the......Hedging is insurance. So if a company believed that the price of oil was going to continue to go up it might very well lock into a contract thinking that they will save money if they are right. Both the buyer and seller are at risk of losing/making money.
Years ago people and companies were buying nat gas hedges at over $15.00. Many of them cried when the spot price of Nat gas fell to $3.00. The people who bought those hedges were of the belief that nat gas was going to $30.
robert41 wrote: I doubt you would be able to hedge at 120 unless the new floor is 150 who would take on hedges like that