Price Risk Management - Energy Commodity Hedging

Price Risk Management - Energy Commodity Hedging

Kodiak Fuels develops, implements and manages customized client specific hedge programs to effectively control price risk using appropriate derivative instruments in the airline, energy, producer, refining and end user sectors.

Our expertise:

  • Design customized risk management programs for refined products, crude, natural gas, high sulfur fuel oil and other commodities
  • Manage physical hedging and inventory management
  • Design alternative purchasing and sales programs
  • Create Daily FASB133 Reports (36 month forward pricing)
  • Generate Daily (MTM) Mark-to-Market Reports
  • Publish a Weekly Market Update
  • Publish a Monthly Kodiak Fuels Market View
  • Execute hedging transactions and manage follow-up details including preparing monthly settlements
  • Assist accounting in transaction controls
  • Develop new counterparties and manage “Margin Controls”
  • Create real time Charts and Graphs using GlobalView/Marketview
  • Chart Platts/OPIS/Argus related commodities
  • Identify the technical analysis and influences in the energy sector
  • Identify fundamental influences in the energy sector
  • Recommend hedges in style, timing, tenor, size and commodity
  • Develop Risk Controls for hedging and commodity risk management
  • Develop Asset Management skills for existing Programs
  • Review Actively Managed Hedge Programs for effectiveness

Weekly Energy Market Update

Wed, 01/25/2012 - 9:30am — Barry

Weekly Energy Market Update details current energy market events impacting the direction of crude and refined products. Weekly DOE inventories are posted as well as market details on crude, gasoline and heating oil before and after the release of this data. Hedging recommendations and relevant crude, propane, gasoline, heating oil, crack spreads and commodity relationship charts are included.

DOE Weekly Report January 25, 2012 at 9:30 CST:

Crude (excluding SPR):  Up:   (+3.558) MMbbls

Gasoline: Down:   (-0.390) MMbbls

Distillate: Down:   (-2.456) MMbbls

Jet Fuel: Down:   (-0.918) MMbbls

Refinery Runs: 82.2%  Down  (-1.5%)

 

Crude was bearish relative to expectations of Up:   (+1.500) MMbbls

Gasoline was bullish relative to expectations of Up:   (+2.000) MMbbls

Distillate was bullish relative to expectations of Down:   (-0.100) MMbbls

 

NYMEX Spot Month Daily WTI Crude Oil:

 

 

ICE Spot Month Daily Brent Crude Oil:

 

 

FASB 133 Forward Prices

Thu, 09/08/2011 - 12:06pm — Barry

FASB 133 report details the monthly market prices for NYMEX crude and heating oil as well as US Gulf Coast jet fuel and Los Angeles jet fuel for 36 months forward (Prompt 2011-2014). FASB 133 extends values into cents per gallon and dollars per barrel for correlation computations. FASB 133 requires commodity relationship correlations to determine the effectiveness of hedges and can be designed specific to our client’s needs in product, style and tenor.

 

Mark-to-Market Daily Report

Thu, 09/08/2011 - 10:06am — Barry

Mark-to-Market (MTM) daily report gives a daily financial status of hedge positions. Mark-to-Market shows daily settlements for NYMEX crude (through 2018) and heating oil as well as formulizing the “Calendar Values” of both commodities due to the different settlement dates. MTM details current hedge targets and marks swaps, collars, caps, puts, crack spreads required by diversified and creative hedging programs.

 

 

Syndicate content