RE:RE:RE:RE:Should there be forced production cuts in Alberta?Unfortunately CVE and Meg hedged their most oil production at WTI below 50 and had so far lost hundreds of millions dollars each quarter for the first 9 months. Most Unfortunately it did not do any hedging when oil price was high.
For VII case, most VII’s hedging contracts are combinations of put and call instead of real Futures contracts. This only Protects Vii from lower oil price than put sold but set a cap at price less call sold. Current oil price is within the range set by Vii put and call, so it has no effect at all.
big players like suncor, IMO and Husky has plenty of pipeline capacity and price discount on Canadian oil has minor impact on them.