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...
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...
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...
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...
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....
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...
An Alternative Oil Hedging Strategy Using Three Way Collars
We've previously explored how both energy producers (see Hedging Oil Gas With Three Way Collars) and consumers (see Fuel Hedging With Three Way...
Mitigating Crude Oil Hedging Losses Caused by Three-Way Collars
On Friday we updated a previous post which explored oil and gas producer hedging with a strategy known as a three-way collar. As we noted in the...