Oil & Energy Online

Low Stock Levels, High Basis Risks

How did we get to this point, and where do we go from here?
How did we get to this point, and where do we go from here? U.S. distillate stockpiles hit seasonal five-year lows late last year and continued to set weekly five-year lows from… https://oilandenergyonline.com/articles/all/low-stock-levels-high-basis-risks/

Really Bad Timing for a Major Hurricane

As winter approaches, energy marketers are hoping to avoid the perfect storm!
As winter approaches, energy marketers are hoping to avoid the perfect storm! By the time this edition of Oil & Energy hits the proverbial newsstands, it will be August and we… https://oilandenergyonline.com/articles/all/really-bad-timing-major-hurricane/

The Foreign Interference Loophole

How Wall Street nearly broke the U.S. economy … again
How Wall Street nearly broke the U.S. economy … again On March 8, 2022, U.S. crude oil prices hit $123.64 per barrel. The price spike was widely regarded as a product of… https://oilandenergyonline.com/articles/all/foreign-interference-loophole/

As the World Teeters

Volatile oil markets reflect economic turmoil and geopolitical chaos
Volatile oil markets reflect economic turmoil and geopolitical chaos Crude oil and refined products options markets have been pricing in significantly higher and increasing… https://oilandenergyonline.com/articles/all/world-teeters/

WAP: Wet and Put

How the right combination of hedging strategies can mitigate basis-blowout risks
How the right combination of hedging strategies can mitigate basis-blowout risks Cash market price differentials to front-month NYMEX HO futures shot up in April and remained… https://oilandenergyonline.com/articles/all/wap-wet-and-put/

About that Basis Blowout…

Recent oil market advance poses significant challenges to hedging next winter
Recent oil market advance poses significant challenges to hedging next winter By now everyone is acutely aware of the oil price volatility that has invaded our end-of-winter… https://oilandenergyonline.com/articles/all/about-basis-blowout/

2022 Hedging Survey

Hedgers confront major market disruptions head-on
Hedgers confront major market disruptions head-on There are price spikes and then there are Price Spikes. As questions were being drafted for Oil & Energy’s 2022 Hedging… https://oilandenergyonline.com/articles/all/2022-hedging-survey/

Energy Markets in Crisis Mode

How geopolitical uncertainty is impacting oil and gas prices
How geopolitical uncertainty is impacting oil and gas prices In March, Russia’s invasion of Ukraine sent energy prices to their highest levels since the 2008 recession. Both WTI… https://oilandenergyonline.com/articles/all/energy-markets-crisis-mode/

The Ramp Test

Historic 12-week comparison answers the eternal questions, when and how to hedge
Historic 12-week comparison answers the eternal questions, when and how to hedge The 2021-2022 heating season is still ongoing, drawing to a close by next month in April, and yet… https://oilandenergyonline.com/articles/all/ramp-test/

Major Blowout Imminent?

There’s a storm brewing on the East Coast!
There’s a storm brewing on the East Coast! As of this writing around January 11, there is a significant storm brewing on the East Coast. I’m not just talking about the current… https://oilandenergyonline.com/articles/all/major-blowout-imminent/

A Return to $100 Crude?

Oil, natural gas and coal prices have risen dramatically across the globe
Oil, natural gas and coal prices have risen dramatically across the globe A global energy crunch caused by weather and rising global demand was getting worse. Energy prices,… https://oilandenergyonline.com/articles/all/return-100-crude/

Is Iran Coming Back to the Table?

The country’s oil output has risen every month since November 2020
The country’s oil output has risen every month since November 2020 The glut in oil stockpiles, which developed as the coronavirus pandemic struck last year, has largely been… https://oilandenergyonline.com/articles/all/iran-coming-back-table/

If You Can’t Beat ‘Em, Blend ‘Em

As costs of compliance rise, oil majors bet big on biofuels
As costs of compliance rise, oil majors bet big on biofuels The price of Renewable Identification Numbers (also known as RINs), which is the compliance mechanism administrated by… https://oilandenergyonline.com/articles/all/if-you-cant-beat-em-blend-em/

The Clean Energy Economy Has Arrived

Don’t get left behind while your competitors reap the benefits
Don’t get left behind while your competitors reap the benefits Over the past 18 months, the liquid heating fuel industry has evolved nearly as much as it did over the prior 18… https://oilandenergyonline.com/articles/all/clean-energy-economy-has-arrived/

The Heating Oil Dealer’s Pricing Program Checklist

How to properly hedge your customer offers this heating season
How to properly hedge your customer offers this heating season Since it’s August and most of you have launched your winter pricing programs, I thought it would be a good time to… https://oilandenergyonline.com/articles/all/heating-oil-dealers-pricing-program-checklist/

Pecking Away at Production Cuts

OPEC+ countries increase output as oil demand rises
OPEC+ countries increase output as oil demand rises On April 1, 2021, OPEC and its allies announced that they would gradually increase their output from May to July. OPEC+ agreed… https://oilandenergyonline.com/articles/all/pecking-away-production-cuts/

Recovery Spells Economic Opportunity for Heating Oil Sellers

As demand returns, RIN spikes blow out ULSD-ULSHO spread
As demand returns, RIN spikes blow out ULSD-ULSHO spread The summer driving season was set to kick off shortly as of this writing in early May, and this summer is shaping up to… https://oilandenergyonline.com/articles/all/recovery-spells-economic-opportunity-heating-oil-sellers/

Locating Lost Opportunity

A smaller than forecasted basis is far more common than the dreaded basis blowout
A smaller than forecasted basis is far more common than the dreaded basis blowout In the commodity space, basis can be defined in a variety of measures. For a refinery, basis is… https://oilandenergyonline.com/articles/all/locating-lost-opportunity/

2021 Hedging Survey

Hedgers consider a year like no other and its implications for tomorrow
Hedgers consider a year like no other and its implications for tomorrow A pandemic, negative crude oil prices, a recession, increased biofuel adoption on the part of oil refiners… https://oilandenergyonline.com/articles/all/2021-hedging-survey/

The Calm After the Storm

As markets normalize, inventories stabilize
As markets normalize, inventories stabilize U.S. distillate stockpiles ended the 2019-2020 heating season well below their five-year average and even weaker than following the… https://oilandenergyonline.com/articles/all/calm-after-storm/