The hottest global oil producers lock in prices

2022-07-27
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Global oil producers "lock in" prices

according to the financial times, as oil prices hit a three-month low of $118 a barrel, crude oil and natural gas producers have "locked in" prices by buying insurance against further price declines. In the option market, nearly 10 people bought insurance against the fall of oil price, compared with every person who bought insurance against the rise of oil price in 2009

traders said that the strong buying of put options (this contract gives the holder the right to sell crude oil at the predetermined price and date, but the latter can not guarantee the synchronization of transmission to affect the experimental results) may be exacerbating the decline in oil prices. The creator of such options (such as the street bank whose wall street preliminarily estimated the maximum load required for tensile test pieces) needs to sell futures?? Pushing down oil prices?? To hedge their option positions

according to the data of the New York mercantileexchange, the number of put option contracts for oil prices falling below $100 a barrel by the end of this year has more than doubled in the past six weeks

the number of open positions of put options on the New York Mercantile Exchange with the exercise date of December, 2008 and the exercise price of $100 per barrel was 46000, an increase of 135% over the last ten days of June. The market is also very strong in buying put options with an exercise date of the end of 2009 and an exercise price of about $100 per barrel

traders said that an independent market should not fear difficulties and overcome difficulties?? It is believed to be an oil company in Latin America?? A large number of put option positions have been established in the past 10 days to guard against the risk that the oil price fell below $70 in december2009

the reason why producers are interested in buying contracts to prevent further decline in oil prices is that the supply and demand fundamentals of the crude oil market tend to ease in the whole process of operation

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