RE:RE:PrimeSpeculative at best. Prime not public and no disclosure. Political risk is random. Numerous parties declaring force majeure on oil and fuel sales. No one knows if RU ships picking up cargos...Thay may not have even been delivered. They should follow the Canadian example.....unilateral contract termination force majeure covid outbreaks, attempted govt coup, RU war & sanctions....there are so many loopholes a Canadian can figure it out even if netoriously corrupt Canadian BFFs UA can haha.
radcat wrote: Weather it is a hedge of forward sale, management usually does this when they believe there isn't much more upside in the commodity. The hedge AOI should have done is to buy call options in the futures market equal to production to assure participation in the oil's upside just in case they "hedged" at too low of a price. They did not do this and now we have to live with the consequenses.