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The Mercatus Energy Pipeline

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Meet Mercatus Energy Advisors During IP Week 2016

 

If you'll be in London for International Petroleum Week 2016, or you're simply based in London,  and would like to meet with us to learn more about our services, discuss trading, hedging or risk management or to simply enjoy a coffee or a cocktail while discussing the oil and gas markets, please get in touch and we will arrange a time and place to meet with you.

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Join us for a Seminar in Dubai, Houston, London or Kong Kong

 

Due to the continued popularity of our oil & gas hedging, risk management and trading seminars, in the coming months we will be hosting seminars in Dubai, Houston, London & Hong Kong. As always, seats are limited so we recommend registering as soon as possible.

Morten Elgkjaer joins Mercatus Energy Advisors

 

Mercatus Energy Advisors announced today that Morten Elgkjaer has been named Vice President of Mercatus Energy Advisors - EMEA. Based in Copenhagen, the energy advisory and research firm's European, Middle East and Africa efforts will be highly integrated with the firm's global efforts and will help the firm better serve its EMEA based clients, as well as its international clients with significant operations in the EMEA regions. 

An Update on Mattress Mack's Crude Oil Trade

 

Last January in a post titled A Crude Oil Hedging Lesson From Mattress Mack - $85 and It's Free, we highlighted Gallery Furniture's "Biggest promotion in Gallery Furniture history". To those of you whom have forgotten about the details of their promotion or never saw it in the first place, here was their pitch:

NYMEX, ICE & EIA 2015/2016 Christmas & New Year's Holiday Calendar

 

If you need to execute energy trades over the Christmas and/or New Year's Day holidays, the trading calendar for CME/NYMEX and ICE energy products as well as the Energy Information Administration pertroleum and natural gas reports for both respective holidays is as follows:

The Fundamentals of Diesel Fuel Hedging - Swaps

 

Given the recent decline in crude oil prices, and in turn, diesel fuel prices, we thought it would be beneficial to address various diesel fuel hedging strategies available to diesel fuel consumers (end-users).  Today we’re going to cover the most common instrument used to hedge diesel fuel price risk, swaps, but in future posts we'll also address several, additional diesel fuel hedging strategies such as call options, costless collars, etc.

Oil & Gas Hedging Update - December 2015 (OPEC Special)

 

While many were of the opinion that OPEC might take action to reduce production, and in turn attempt to support prices, the results of the organization's meeting Friday in Vienna appears to be nothing short of an "every member for itself" strategy. As such, it appears that a relatively low oil price environment is here to stay, at least in the short term.

Natural Gas Hedging & Marketing in a $2.00/MMBtu & 4 TCF Market

 

The EIA will release its weekly natural gas storage report tomorrow (one day early due to the Thanksgiving holiday) and it’s likely the agency will report another build. As most of you who follow the natural gas markets are well aware, storage levels reached an all-time high of 4 TCF (trillion cubic feet) for the week ending November 13, 2015 and given the moderate weather across most of the country last week, analysts are forecasting another build in tomorrow’s report.

Oil & Gas Hedging Update - November 2015

 

While our monthly update is a bit belated this month, forward prices – at least flat prices - haven’t changed much since our October update. Since our last update the one-year forward curves for the primary crude oil markets have declined by an average of 0.54%, highlighting how relatively quiet the oil markets have been in recent weeks. Month-over-month, one-year forward prices for WTI are unchanged while LLS, Brent and Dubai crude oil have declined by 0.31%, 0.40% and 1.49%, respectively. On a year-over-year basis, the one year forward curves for WTI, Brent, LLS and Dubai have declined by 38.93%, 40.82%, 0.40% and 1.49%, respectively. The Brent-WTI one year forward curve has narrowed by $0.175/BBL to $3.550/BBL since our October update.

Bunker Fuel Hedging With Costless Collars (Updated)

 

In the first two posts in our series our bunker fuel price risk management, we explains how a marine fuel consumer can  utilize the two most common fuel oil hedging strategies – fixed price swaps and call option. Today we’re going to explain a strategy known as a collar, often a “costless” collar. While many often find the term collar to be confusing, the strategy isn't as complex as it might sound, as it simply the combination of buying one option (in the case of a fuel consumer, a call option) and selling another option (in this case, a put option) to create a price ceiling (also known as a max or maximum) and floor (as known as a min or minimum).

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