How ironic....
Just when oil starts to hit the lower edge of the Hedge, the Hedge unwinds. For the 3 year period of the lowest oil price in living memory, we were paying $80-120 a barrel for 50% of our fuel. Learning their lesson, they abandoned all the principles of risk management and stopped hedging when oil was down at $30-40, so from 2019 we have no hedging in place. There's always geopolitical risk out there (sanctions against Iran for example). Back in 2015-16, you could buy oil at $30-40, why would you not secure some? Is oil really going to drop any lower than $30; even if it does, your downside risk is $30.....
Management could not have got this more wrong if they tried..... Makes you wonder what they were trying to do?
Time to win.... time to try? Trying times?