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Add in the cost of the hedges plus the strike price you may end up paying close to 110 if you hedged in the last few months.
Oil futures are in normal backwardation. When did they flip from contango to backwardation? As far as I know, oil went from contango to backwardation in late October.
April '12 NYMEX crude traded at $109.62 last.
June '13 traded at $107.23 last.
Both traded today.
Even airlines that have hedged are going to be hurting, nobody is 100% hedged and the market has wised up to the volatility, hedges are more expensive than they used to be.
I'm confused...either way the cost of the future has put oil close to where it is trading today.
Also, some are hedged using Brent Crude vs WTI, which takes a worldwide look vs just American prices, providing a cushion for spikes outside the US.
Really? Look at 2014 through 2020 futures prices and post them.