Kodiak Fuels - Price Risk Consultants

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 July 28, 2010:

Crude: Up + 7.3060 MMbbls

Gasoline: Up + 0.091 MMbbls

Distillate: Up + 0.938 MMbbls

Jet Fuel: Up + 0.308 MMbbls

Resid:  Down – 0.216 MMbbls

Refinery Runs: 90.60% Down - 0.90%

Crude was very bearish relative to expectations of Down – 1.600 MMbbls

Gasoline was bullish relative to expectations of Up + 0.800 MMbbls

Distillate was very bullish relative to expectations of Up + 1.800 MMbbls

NYMEX Spot Month Daily Crude Oil:

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 2010-2013). 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 (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.