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Search: Posts Made By: Numero Crunchero

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Forum: Fragrant Harbour

20th Jan 2018, 08:05

Replies: 19

Fuel Hedge Improves

Views: 9,401

Posted By Numero Crunchero

Lions-yes. But let me give an example to make it...

Lions-yes. But let me give an example to make it clearer.

We need 100 barrels of oil - we have hedged 50 at $80. So no matter what we are paying $4,000 for half our oil. (50 x $80)

Now if oil...

Forum: Fragrant Harbour

20th Jan 2018, 07:03

Replies: 19

Fuel Hedge Improves

Views: 9,401

Posted By Numero Crunchero

It's not that simple

If we were unhedged and oil fell $2 per barrel(Jet), we would save $2 per barrel. Because we hedged 50%(or so) we only save $1 for every $2 fall in oil price.

Conversely, for every $2 rise in oil,...

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