Bunker Fuel Hedging & Price Risk Management - Call Option Spreads
This post is the fourth in a series on hedging bunker fuel price risk. The first post in the series, An Introduction to Bunker Fuel Hedging,...
Refined Products (4)
Optimizing "In-The-Money" Fuel Hedging Strategies
Given the recent increase in global fuel prices we thought it would be beneficial to explore how companies can optimize their existing fuel hedging...
The Case For Employing A Dynamic Fuel Hedging Program
Historically, many large fuel consuming companies have utilized passive fuel hedging strategies but, companies who "hedge and forget it" often accept...
The Ultimate Airline Fuel Hedge Part II: Don't Buy A Refinery?
Last April, in a post titled The Ultimate Airline Fuel Hedge: Buy A Refinery, we highlighted Delta Airlines acquisition of the Trainer refinery from...
Is There Such A Thing As A Cheap, Low Risk Fuel Hedging Strategy?
Over the course of the past three months, the prompt month Brent, WTI, gasoil and heating oil futures have averaged daily changes of $1.02/BBL,...
Basis Risk Leads to Unexpected Fuel Hedging Results
While we analyze numerous basis relationships across the energy commodity markets on a regular basis, it's rarely a simply task, as the relationships...
Fuel Hedging: Swaps + Put Options = Call Options
As all large fuel consuming companies are well aware, fuel prices have increased significantly over the past couple months. Relative to their June...
Hedging Fuel Price Risk With Spreads On Options
Given the roller coaster in the oil markets over the past month, during which crude oil futures have moved nearly $30/BBL from the high to the low...
Is Now An Ideal Time to Hedge Fuel Prices?
It was only a few weeks ago that many analysts were calling for crude oil to continue to trend towards $150 per barrel. Today many are saying that...
An Introduction to Airline Fuel Hedging Strategies - Swaps
As we've recently received inquires from several airlines who are looking to begin hedging their jet fuel price risk for the first time, we thought...