Mercatus Energy

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The Fundamentals of Oil & Gas Hedging - Updated

While the basic fundamentals of energy hedging and risk management don't change very often, the prices at which one can hedge clearly do. As such, we have decided that it would be prudent to update many our older posts which explore the basic energy...

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A Layman's Explanation of the "Famous" Crude Oil Storage Trade

In recent weeks, there have been a lot of stories floating around about the "oil storage trade" but we've yet to see a good layman's explanation of...

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What's Driving the Brent-WTI Crude Oil Spread Towards Zero?

While NYMEX natural gas futures are often referred to as the widowmaker of the energy trading world, the recent collapse in the Brent-WTI crude oil...

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Airlines Alter Fuel Hedging Strategies for Low Price Environment

As crude oil and jet fuel prices continue to decline, many airlines are adapting their fuel hedging strategies to account for the current, lower...

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A Crude Oil Hedging Lesson From Mattress Mack - $85 and It's Free

If you live in Houston or you've spent much time here, you're certainly familiar with Jim "Mattress Mack" McIngvale, the owner of Gallery Furniture....

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An Alternative Oil Hedging Strategy Using Three Way Collars

We've previously explored how both energy producers (see Hedging Oil Gas With Three Way Collars) and consumers (see Fuel Hedging With Three Way...

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Mitigating Crude Oil Hedging Losses Caused by Three-Way Collars

On Friday we updated a previous post which explored oil and gas producer hedging with a strategy known as a three-way collar. As we noted in the...

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How Will Global Oil Markets React to Tomorrow's OPEC Meeting?

While the US energy markets will be closed for the Thanksgiving holiday tomorrow, nearly everyone who has any interest in the global oil and gas...

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Chicago & Group 3 ULSD Basis Blowouts Provide Fuel Hedging Lesson

On Friday Chicago ULSD spot prices jumped $0.1875/gallon putting Chicago spot prices at $0.29 over November NYMEX ULSD futures, the highest Chicago...

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Opportunistic Diesel Fuel Hedging Strategies as Oil Markets Collapse

As crude oil and refined products continue to decline, we're hearing from many commercial and industrial fuel consumers who are looking for...

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