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

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Basis - An Often Overlooked Aspect of Natural Gas Hedging

Natural gas basis rarely receives the attention it deserves, but can make or break a commercial hedging, marketing or supply strategy. In West Texas, for example, natural gas prices in the basin have been negative in recent months, turning a...

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Unique Natural Gas Deal Provides "Ideal" Hedge for Both Buyer & Seller

Cheniere Energy, Inc. and Apache Corporation recently committed to a long-term gas supply agreement that made headlines because of how the natural...

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Crude Oil Options: Understanding Volatility and Time Value

Volatility and time are just as important to understanding option premium as intrinsic value. This is especially true for a hedger who uses out of...

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Optimizing Oil & Gas Producer Hedge Portfolios with Call Options

In our last post, Can Activity in Crude Oil Options Provide Insight into Crude Oil Price Trends, we explored the definition of delta, as well as it’s...

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Can Activity in Crude Oil Options Provide Insight into Crude Oil Price Trends?

In a recent Bloomberg article, “In a Risky World, Oil Traders Bet on $100 a Barrel” the author explored how, “Some oil traders have started to gear...

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Will Your Oil Hedging Strategies Sustain Another 2008-Like Crisis?

Will oil prices going to continue to decline or is yesterday's correction the end of the recent sell-off? Are we in the early stages of a 2008-like...

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An Introduction To Crack Spread (Refiner) Hedging

Over the course of the past year, refining profit margins have been all over the map. As an example, over the course of the past year, the WTI-NY...

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Common Oil & Gas Hedging Errors & How to Avoid Them

As energy risk management advisors, we're often called in to help clients "stop the bleeding" caused by flawed energy risk management methodologies,...

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Top Energy Hedging Failures in the Current Market Environment

As energy hedging advisors, we often see many market participants, make significant, if not catastrophic, errors related to their hedging strategies....

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