HEDGING PROGRAMS 4 ENERGYOver the past 25 years, energy markets have shown increased volatility and price spikes. These are due to many fundamental factors, including supply-demand imbalances, weather unpredictability, and geopolitical uncertainties. We come from the floor of the Chicago Mercantile Exchange and have over 25 years of experience in analyzing energy trends. We continuously monitor the energy markets in real time.
We help the client understand many of the risk elements involved such as: Fixed All-in Pricing This option provides the client with a fixed price for the entire length of the contract. It gives the most budget certainty and protects the client from market volatility. Risk Profile: very low Index Pricing This option provides the client with a variable monthly price. It gives a client who believes that the cost of energy will go down in the future and therefore doesn’t want to be locked in a fixed price. Risk Profile: very high Block and Index Pricing (Hybrid) This option provides the client with a combination of fixed price and variable price. It gives the client partial exposure to market volatility. Risk Profile: medium
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