Hidalgo Refinery Sunrise

Commodity Hedging

Mediate price uncertainty and protect your exposure to commodities.

Corporations with exposure to commodities such as energy are confronted daily with price uncertainty in the volatile commodity markets. Commodity price risks affect traders, producers, and users of commodities in both their revenue and cost structures.

Fundamental Analysis  Reading A Balance Sheet

Hedge your commodity exposure with confidence

Despite the ever-expanding instrument offering of Derivatives Exchanges worldwide, certain underlying commodities or their by-products do not have financial derivatives to enable a corporate to easily hedge with confidence. This is where our deep fundamental knowledge of the commodity markets coupled with strong structuring skills can help you.

In conjunction with trusted partner firms dedicated to commodities and commodity hedging, we can assist corporates such as utilities and industrials, airlines, and vessel owner/operators, identify and reduce the commodity risks that prove a challenge to their operations. The service encompasses an integrated commodity risk assessment solution including hedge plan preparation, strategy implementation, and transaction lifecycle monitoring.

The instruments used range from commodity swaps to option structures, both OTC and Exchange Cleared on a multitude of underlying commodities related to energy (i.e. crude oil and its refined products such as gasoline, heating oil, jet fuel, bunker fuel, etc.), freight (FFAs), power, and carbon emissions.

For more information, contact us.