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

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A New Look At Sovereign Oil Hedging Strategies

Last December, in a post titled Sovereign State Oil Hedging On The Rise, we highlighted the hedging initiatives of several sovereign oil and gas producers including Mexico, Qatar and Ecuador as well as several sovereign oil consumers including...

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A Look At Volatility As It Relates To Crude Oil Hedging

In the most recent version of This Week in Petroleum, the EIA published an article on historical vs. implied volatility in Brent crude oil which...

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Beware of Energy Derivative Marketers Promising Cash

In recent weeks we've been asked by several clients to review potential transactions which have been proposed to them by their counterparties. The...

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Fuel Hedging: Swaps + Put Options = Call Options

As all large fuel consuming companies are well aware, fuel prices have increased significantly over the past couple months. Relative to their June...

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Hedging Fuel Price Risk With Spreads On Options

Given the roller coaster in the oil markets over the past month, during which crude oil futures have moved nearly $30/BBL from the high to the low...

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Are You Hedging or Speculating As Oil Trades At An 18 Month Low?

Heading into the weekend, it appears that Brent crude oil may settle the day at below $90/BBL for the first time since December of 2010, while WTI...

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Crude Oil Hedging: Converting Swaps Into Synthetic Put Options

As a result of the recent decline in crude oil prices, we've received a couple of inquires from companies wanting to know how they can turn their...

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Upcoming Energy Risk Management Events & Recent Articles

If you haven't perused our website recently, you may have missed the following: May 23rd & 25th Mike Corley will be delivering presentations on base...

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Update on Transition to Lower Sulfur Heating Oil & Gasoil Futures

As we've previously discussed, the CME/NYMEX has decided to keep the existing heating oil futures contract, which was previously due to be...

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