Crude Oil hedging
Crude Oil hedging - or oil risk management - is what we do - it is part of our DNA.
Oil hedging definition - what is oil hedging?
Oil hedging is used to reduce or eliminate a company's exposure to fluctuating oil prices. It is a contractual tool allowing a company to fix or cap an oil price at a certain level or period of time.
Oil hedging - why use it?
If your company is exposed to oil price fluctuations, oil hedging is a tool that can help eliminate the risk of your fuel budget getting out of control. Here is a few examples of why to hedge:
- Oil prices fluctuate - the oil market is extremely volatile
- Oil expenses represent a large fraction of the operational costs
- Insurance against price increases
- Pro-active strategy for budget protection
How to get started - Oil hedging strategies?
You and Global work out a hedging strategy and evaluate wihch hedging tools could be of advantage to you - we customise the tools to fit your specific needs.