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

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Bunker Fuel Hedging & Price Risk Management - Call Options

In the first post in this series, Bunker Fuel Hedging & Price Risk Management - Swaps, we examined how companies in the maritime and shipping industries can hedge their exposure to volatile bunker fuel prices with a strategy known as a fixed price...

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Oil & Gas Hedging with Deep Out-of-the-Money Options and a Limited Budget

The need for effective hedging and marketing is greater in the current price environment i.e. $50/BBL than it is in a higher price environment i.e....

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Bunker Fuel Hedging & Price Risk Management - Swaps

As crude oil and bunker fuel (fuel oil) prices have been extremely volatile since we originally published this article, we thought it would be best...

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Energy Price Risk Management - Better to be Lucky than Good?

You often hear people say, “It’s better to be lucky than good.” I go the exact opposite direction – Luck has the ability to hide bad management...

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Oil & Gas Producer Hedging - What Price is High Enough?

The prompt month NYMEX WTI contract settled at $107.26/bbl on June 20, 2014. That day would prove to be a major inflection point in the market. The...

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Setting Price Targets: A Viable Energy Hedging Strategy?

Hedging crude oil or natural gas when the market hits a producer's target price is neither a way to manage price risk nor to maximize the price...

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The Fundamentals of Oil & Gas Hedging - Costless Collars

This post is the fourth in a series where we are exploring (no pun intended) how oil and gas producers can hedge their exposure to crude oil, natural...

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Energy Hedging Myths Demystified - Part II

This post is the second in our series covering energy hedging myths. The first post, Energy Hedging Myths Demystified - Part I, is available via this...

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Fuel Price Risk Management & Three-Way Collars

As energy trading and risk management advisors, we regularly receive inquiries regarding if, when and how a company might hedge their exposure to...

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