Is Your Crude Oil Hedging Strategy Overly Optimistic?
In our last post, we addressed natural gas producers' tendency to be overly optimistic, how it exposed many of them to unnecessary risk, and caused...
Crude Oil (5)
An Introduction to US Gulf Coast Crude Oil Hedging
As the Gulf Coast continues to becoming an ever more active crude oil trading hub, the interest in hedging Gulf Coast crude oil is increasing as...
An Update on Sovereign Oil Hedging Programs
Over the course of the past few days we've received several reports that Mexico has begun to execute it's 2014 oil hedging program, so we're going to...
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...
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...
A Beginner's Guide to Crude Oil Options - Part I - Strike Price
We're often asked to explain what determines the price of crude oil (as well as bunker fuel, diesel fuel, gasoil, gasoline and jet fuel) options....
Oil Hedging Losses Coming Soon To A Board Room Near You
In recent weeks the Brent-WTI spread has collapsed once again, settling yesterday at just above $17/BBL after trading as high as $25.53 in mid...