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prima facie this is good for businesses which rely on oil (airlines, etc) but most of the big companies hedge the price risk (both up and down) via futures cont
by huac 7y ago
prima facie this is good for businesses which rely on oil (airlines, etc) but most of the big companies hedge the price risk (both up and down) via futures contracts, so the price cuts are not likely to help any major businesses in the short-term. feels like red for the foreseeable future...
- audiometry 7y agoThese hedges are going to further ruin airlines. Now they have giant margin calls on their money-losing hedges + they hedged not assuming 40% drop in business, so now they're overhedged.