Over the course of the past year, the price of prompt month NYMEX natural gas futures have doubled since bottoming just below $2/MMBtu. The reasons are many (weather, coal to natural gas fuel switching, declining rig counts, etc.) and are prompting...
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A few weeks ago, in a post titled How to Reduce Basis Risk by Hedging with Options - Part I, we looked at how a large fuel consumer, such as an...
As of yesterday, NYMEX heating oil futures and options are now ultra low sulfur diesel fuel (ULSD) futures and options. The transition is a long time...
In our role as energy hedging advisors, we regularly receive inquires from companies who have had a difficult time, if not worse, in producing...
Since the NYMEX introduced the heating oil futures contract in 1978, energy consumers, producers, marketers, refiners and processors have had the...
As readers of our blog are well aware, we spend a lot of time analyzing and discussing basis relationships and the accompanying risk. While it's...
This post is the fourth in a series on hedging bunker fuel price risk. The first post in the series, An Introduction to Bunker Fuel Hedging,...
Given the recent increase in global fuel prices we thought it would be beneficial to explore how companies can optimize their existing fuel hedging...
Historically, many large fuel consuming companies have utilized passive fuel hedging strategies but, companies who "hedge and forget it" often accept...
