Ideas, strategies, and viewpoints on the global energy commodity markets.

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Bunker Fuel Hedging & Price Risk Management - Three-Way Collars

In recent weeks, we've spoken with many bunker fuel consumers (cruise lines, shipping companies, etc.) who are seeking "more creative" hedging strategies that they can consider employing to hedge their exposure to bunker fuel prices. Traditionally,...

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A Beginner's Guide to Crude Oil Options - Part IV - Interest Rates

As we discussed in A Beginner's Guide to Crude Oil Options - Part I Part II & Part III, there are four primary factors that determine the price of...

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A Beginner's Guide to Crude Oil Options - Part III - Volatility

As we discussed A Beginner's Guide to Crude Oil Options - Part I & Part II, there are four primary factors that determine the price of crude oil, as...

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A Beginner's Guide to Crude Oil Options - Part II - Time Value

This post is the second in a series on crude oil options. This first post in the series can be found via the following link: A Beginner's Guide to...

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A Beginner's Guide to Crude Oil Options - Part I - Strike Price

We're often asked to explain what determines the price of crude oil (as well as bunker fuel, diesel fuel, gasoil, gasoline and jet fuel) options....

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Does Hedging with Costless Collars Present Additional Basis Risk?

Over the past couple years we have addressed various aspects of both basis risk and costless collars however, until now, we have not addressed the...

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Costless Collars - Energy Hedging Friend or Foe?

As has been the case many times in the past and certainly will be many times in the future, the debate regarding the advantages and disadvantages of...

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Can Your Hedging Strategies Tolerate Significantly Lower Oil Prices?

Are oil prices poised to collapse again, as they did in 2008? We don't claim to know the answer to such a question as doing so would require us to...

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Three Strategies for Dealing with Rising Fuel Costs

Join Mercatus Energy Advisors and Allegro, Tuesday April 23, 2013 at 9:00 AM CT, for a 30 minute live webinar to learn about three strategies for...

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