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...
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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...
Is Brent Now the Global Benchmark for Crude Oil Hedging?
In early December the EIA announced that beginning with its 2013 Annual Energy Outlook, which will be published in the spring, the agency is going to...
A New Look At Sovereign Oil Hedging Strategies
Last December, in a post titled Sovereign State Oil Hedging On The Rise, we highlighted the hedging initiatives of several sovereign oil and gas...
A Look At Volatility As It Relates To Crude Oil Hedging
In the most recent version of This Week in Petroleum, the EIA published an article on historical vs. implied volatility in Brent crude oil which...
Are You Hedging or Speculating As Oil Trades At An 18 Month Low?
Heading into the weekend, it appears that Brent crude oil may settle the day at below $90/BBL for the first time since December of 2010, while WTI...
Crude Oil Hedging: Converting Swaps Into Synthetic Put Options
As a result of the recent decline in crude oil prices, we've received a couple of inquires from companies wanting to know how they can turn their...