How to hedge if you own a cargo but don’t have a buyer? | LNG Trading and Hedging | IBH | ICE

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[@VicSMeIsTeR]

Thank you, I just didn't get why Exxon is selling on the following day, isn't the opposite actually to buy futures in order to hedge?

[@tahaidrissguenboura1791]

Because in that situation they are at Time0 in a Cash buy position (they own it) so they sold the futures for hedge the price of selling vs the price that they paid for extracting it.
After in the Time1, when they'll sell it at the buyer they will buy a futures position for close the short position in futures. So in the Time1 they are in a Cash short position and in a Futures long position.

[@VicSMeIsTeR]

@@tahaidrissguenboura1791 {T0} O&G Production - LONG + Selling Futures or Options - SHORT
{T1}Selling O&G Cargo - closing the LONG position + Buying Futures or Options - Closing SHORT position
Is that correctly depicting the transactions?
Cheers