Passive vs. Active Energy Hedging Strategies - Part II
After trading as low as $3.125/MMBtu in mid February and as high as $4.444/MMBtu in early May, NYMEX natural gas futures have recently given up...
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A Creative Diesel Fuel Hedging Strategy
As both Brent & WTI crude oil are now well over $100/BBL, many large fuel consumers are seeking creative hedging strategies that protect them against...
Caveat Emptor - Hedging Brent vs. WTI & Crack Spreads
As the Brent-WTI spread is trading at it's lowest level since November 2010 and crack spreads shifting as a result, it's time that we take another...
Passive vs. Active Energy Hedging Strategies - Part I
As all large fuel consuming companies know all too well, fuel prices have increased significantly over the past few months. After posting 2013 lows...
Hedging Against A Potential Oil Price Spike
After trading as low as $92.67 only two weeks ago, WTI Crude oil prices have risen significantly since then, trading above $100/BBL for the only the...
Hedging Refining Profit Margins with Crack Spread Options
Over the past year, refining profit margins have been quite volatile. As an example, Brent crude oil/gasoil calendar swap crack spreads have traded...
Bunker Fuel Hedging & Price Risk Management - Three-Way Collars
In recent weeks, we've spoken with many bunker fuel consumers (cruise lines, shipping companies, etc.) who are seeking "more creative" hedging...
A Beginner's Guide to Crude Oil Options - Part IV - Interest Rates
As we discussed in A Beginner's Guide to Crude Oil Options - Part I Part II & Part III, there are four primary factors that determine the price of...
A Beginner's Guide to Crude Oil Options - Part III - Volatility
As we discussed A Beginner's Guide to Crude Oil Options - Part I & Part II, there are four primary factors that determine the price of crude oil, as...
A Beginner's Guide to Crude Oil Options - Part II - Time Value
This post is the second in a series on crude oil options. This first post in the series can be found via the following link: A Beginner's Guide to...