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Wednesday, May 1, 2024

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Unintended Consequences and Other Unexpected Outcomes

Account executives working for Hedge Solutions routinely provide information to clients pertaining to market fundamentals, as well as price risk management guidance. Of course a core fundamental is what is occurring in economies throughout the world. Simp…
Account executives working for Hedge Solutions routinely provide information to clients pertaining to market fundamentals, as well as price risk management guidance. Of course a… https://oilandenergyonline.com/articles/all/unintended-consequences-and-other-unexpected-outcomes/

Predicting Winter Price Trends

What are prices going to do this winter? This time of year it’s always one of the first questions dealers ask. Should they be filling their inventory? Should they be purchasing extra wet barrels?
What are prices going to do this winter? This time of year it’s always one of the first questions dealers ask. Should they be filling their inventory? Should they be purchasing… https://oilandenergyonline.com/articles/all/predicting-winter-price-trends/

Think You Know Your Margins?

What are you doing with all that data you are mining these days? Modeling your data can tell you quickly and efficiently how to increase profits and spot areas where you are leaving money on the table! Specific to hedging and buying oil, let’s look at thi…
What are you doing with all that data you are mining these days? Modeling your data can tell you quickly and efficiently how to increase profits and spot areas where you are… https://oilandenergyonline.com/articles/all/think-you-know-your-margins/

It’s a Boutique Fuel World

As we transition from traditional heating oil towards ultra-low sulfur diesel fuel by summer 2018, the East Coast heating fuel market is seeing an increase in boutiquing. The state of New York moved directly from high sulfur heating oil to ultra-low sulfu…
As we transition from traditional heating oil towards ultra-low sulfur diesel fuel by summer 2018, the East Coast heating fuel market is seeing an increase in boutiquing. The… https://oilandenergyonline.com/articles/all/its-boutique-fuel-world/

Check or Credit Card?

Credit card payments pay a vital role in most retail energy sales and home comfort services, and there are a lot of complexities involved. Once seen as a costly way of accepting customer payments, credit cards are getting more love from energy marketers b…
Credit card payments pay a vital role in most retail energy sales and home comfort services, and there are a lot of complexities involved. Once seen as a costly way of accepting… https://oilandenergyonline.com/articles/all/check-or-credit-card/

Data Security as a Strategic Advantage

The high-profile credit card security breaches at major U.S. retailers over the last six months emphasize the prevalence of data theft and also spotlight the risks to a merchant caught unprepared for such crimes.
The high-profile credit card security breaches at major U.S. retailers over the last six months emphasize the prevalence of data theft and also spotlight the risks to a merchant… https://oilandenergyonline.com/articles/all/data-security-strategic-advantage/

More Essentials of Price Risk Management

Last month, I put forth some essentials of price risk management and hedging. It started with giving customers what they want and asserting that they want protection against significantly higher heating oil prices. I suggested that customers be made aware…
EDITOR’S NOTE: This is the second installment of a two-part article. Last month, I put forth some essentials of price risk management and hedging. It started with giving… https://oilandenergyonline.com/articles/all/more-essentials-price-risk-management/

The Essentials of Price Risk Management

Recently, at the Atlantic Region Energy Expo, I ran into an acquaintance who inquired about Hedge Solutions and the services that we provide to our clients. He lamented that price risk management is complex enough to occasionally set his head to spinning.…
Recently, at the Atlantic Region Energy Expo, I ran into an acquaintance who inquired about Hedge Solutions and the services that we provide to our clients. He lamented that… https://oilandenergyonline.com/articles/all/essentials-price-risk-management/

Fixed Differential Could Be a Game Changer

While many dealers and customers are still recovering from the long winter it’s imperative we shift our attention to next season’s price protection programs.
While many dealers and customers are still recovering from the long winter – one of the coldest and most challenging in years – it’s imperative we shift our attention to next… https://oilandenergyonline.com/articles/all/fixed-differential-could-be-game-changer/

Hedging in an Uncertain World

On the heels of the coldest winter in years, marketers face a fresh set of challenges in 2014 and 2015. Weather could go either way. Customers may or may not show renewed interest in price protection. Basis could blow out again.
On the heels of the coldest winter in years, marketers face a fresh set of challenges in 2014 and 2015. Weather could go either way. Customers may or may not show renewed… https://oilandenergyonline.com/articles/all/hedging-uncertain-world/

Reducing Stings for Marketers, Customers

And so it began. From tulip mania in the 1600s in Europe to soft commodities like corn and soybeans to hard commodities like gold and silver, and of course the financials: bonds and interest rates. It was only a matter of time before the markets discovere…
And so it began. From tulip mania in the 1600s in Europe to soft commodities like corn and soybeans to hard commodities like gold and silver, and of course the financials: bonds… https://oilandenergyonline.com/articles/all/reducing-stings-marketers-customers/

Extreme Conditions Expose Basis Risk

Rack prices of heating oil pulled higher and higher away from the spot NYMEX HO (ULSD) futures contract price this heating season, eating into capped price program margins for gallons hedged only with paper (call options).
Rack prices of heating oil pulled higher and higher away from the spot NYMEX HO (ULSD) futures contract price this heating season, eating into capped price program margins for… https://oilandenergyonline.com/articles/all/extreme-conditions-expose-basis-risk/

Holding Onto a Margin Spike

Price volatility is typically regarded as a problem for heating oil retailers. When futures prices rise 7 cents in one day and there are two rack prices in that day, that’s a problem. When prices go up 12 cents in three days, that’s a problem. When prices…
Price volatility is typically regarded as a problem for heating oil retailers. When futures prices rise 7 cents in one day and there are two rack prices in that day, that’s a… https://oilandenergyonline.com/articles/all/holding-margin-spike/

Why the Cash Crunch?

To overcome liquidity challenges, address the underlying problems
To overcome liquidity challenges, address the underlying problems   Another January is upon us, and this should be the time of year when fuel dealers are, at least… https://oilandenergyonline.com/articles/all/why-cash-crunch/

Short-Term Options Can Provide an Edge

It’s finally that time of year when the weather gets cold and the days get short. Now is the time to take advantage, and make as much money as possible.
It’s finally that time of year, the time we wait all summer for, when the weather gets cold and the days get short. Now is the time to take advantage, and make as much money as… https://oilandenergyonline.com/articles/all/short-term-options-can-provide-edge/

Revamp Your Receivables

AROUND FOUR YEARS AGO, SOS XTREME Comfort, of Tuxedo Park, N.Y., decided to partner with AVATAS Payment Solutions, of Newton, Mass., to gain assistance in their receivables process. Like many heating fuels companies, SOS had grown into the habit of extend…
AROUND FOUR YEARS AGO, SOS XTREME Comfort, of Tuxedo Park, N.Y., decided to partner with AVATAS Payment Solutions, of Newton, Mass., to gain assistance in their receivables… https://oilandenergyonline.com/articles/all/revamp-your-receivables/

Hedging Against Fixed Price Contract Defaults

U. S. markets, in particular the stock markets and petroleum markets, have, with considerable help from the Federal Reserve, made a stunning recovery from the 2008 price plunge. Does this mean that we are in a position where we could experience another he…
U. S. markets, in particular the stock markets and petroleum markets, have, with considerable help from the Federal Reserve, made a stunning recovery from the 2008 price plunge.… https://oilandenergyonline.com/articles/all/hedging-against-fixed-price-contract-defaults/

Hedging Guidance Adds Valuable Perspective

When Mobil Oil transferred me to New England in the early ‘90s to work in the Distillates Department, price protection programs offered by heating oil retailers to consumers were in their infancy. As with a lot of start-up programs, the offerings were not…
When Mobil Oil transferred me to New England in the early ‘90s to work in the Distillates Department, price protection programs offered by heating oil retailers to consumers… https://oilandenergyonline.com/articles/all/hedging-guidance-adds-valuable-perspective/

Make Your Numbers Count

Does it feel like the margin for error in your business keeps getting smaller? If so, you’re not alone.
Does it feel like the margin for error in your business keeps getting smaller? If so, you’re not alone. The world we knew even 10 years ago is gone. In its place, we wake up every… https://oilandenergyonline.com/articles/all/make-your-numbers-count/

Credit Card Surcharging Now Permitted

Have you ever been into a store with a sign reading “cash only” or “$10 minimum on credit card transactions”? This is most likely due to the fact that businesses accepting credit cards pay a percentage of every transaction to the credit card companies for…
Have you ever been into a store with a sign reading “cash only” or “$10 minimum on credit card transactions”? This is most likely due to the fact that businesses accepting… https://oilandenergyonline.com/articles/all/credit-card-surcharging-now-permitted/

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