Dec Ng 2022 is >7.00!
Posted: Mon Apr 11, 2022 1:05 pm
Dec 2022 is 7.00 , WOW
If the price hold, OXY will earn 7.00 as they are unhgedged
Some hedgers will make 2.50 > they call that "price risk mgt." They were focused on non cash swaps. congrats, no cash costs on front end. The counterparty gets 4.50 , the E&P company gets 2.50
Wait, it can get worse. Say it goes to 10, the bank gets 75 % the EP company gets 25 %
If the price hold, OXY will earn 7.00 as they are unhgedged
Some hedgers will make 2.50 > they call that "price risk mgt." They were focused on non cash swaps. congrats, no cash costs on front end. The counterparty gets 4.50 , the E&P company gets 2.50
Wait, it can get worse. Say it goes to 10, the bank gets 75 % the EP company gets 25 %