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Old 23rd January 2009 | 17:53
  #484 (permalink)  
Caudillo
 
Joined: Sep 2005
Posts: 297
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From: Where its at
The infamous hedge was made about 3 weeks after the price of oil had peaked.

edit: I should say, may have been made 3 weeks after the price of oil had peaked.

The alternative is that is was made 3-6 weeks prior to the peak.

It was within spitting distance of what turned out to be the top of the market.

further edit: The timing was unfortunate but in fairness, locking in the price albeit at such high levels was necessary at the time. If you imagine an aircraft taking off and finding that the destination kept moving further away it's perhaps similar. I assume they didn't want to take the chance that it moved further than there was fuel on board to reach it.

Last edited by Caudillo; 23rd January 2009 at 18:07.
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