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

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As Oil Prices Decline, Who is Well Hedged and Who is Not?

Given the decline in oil prices we've recently received several inquiries asking who is well hedged and who is not, particularly among the various sovereign entities that have significant exposure to oil prices, both producers and consumers. As...

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Can NASDAQ, SGX & SHFE Compete with CME & ICE in Energy Markets??

On Friday NASDAQ Futures (NFX) launched twenty-six “new” commodity contracts in an attempt to take market share from incumbents CME (NYMEX) and ICE....

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The Fundamentals of Oil & Gas Hedging - Updated

While the basic fundamentals of energy hedging and risk management don't change very often, the prices at which one can hedge clearly do. As such, we...

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Crude Oil Hedging in An Uncertain Environment - $30 or $200

WTI has traded in a volatile range lately, as have Brent and all other grades of crude oil. The prompt WTI crude oil contract lost more than 8% of...

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A Layman's Explanation of the "Famous" Crude Oil Storage Trade

In recent weeks, there have been a lot of stories floating around about the "oil storage trade" but we've yet to see a good layman's explanation of...

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What's Driving the Brent-WTI Crude Oil Spread Towards Zero?

While NYMEX natural gas futures are often referred to as the widowmaker of the energy trading world, the recent collapse in the Brent-WTI crude oil...

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Airlines Alter Fuel Hedging Strategies for Low Price Environment

As crude oil and jet fuel prices continue to decline, many airlines are adapting their fuel hedging strategies to account for the current, lower...

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A Crude Oil Hedging Lesson From Mattress Mack - $85 and It's Free

If you live in Houston or you've spent much time here, you're certainly familiar with Jim "Mattress Mack" McIngvale, the owner of Gallery Furniture....

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Will Consumers Make The Same Hedging Mistakes as Many Producers?

I spent the holidays on the road between Houston and Nebraska visiting family. The trip took me though some rural communities where it is common to...

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