Get more margin and less risk

Keeping fuel costs within a predictable range protects you from unexpected changes in the price of fuel. Changes that could otherwise seriously impact your budget and profit margin.

Capped swaps

Fix your price below the market price in exchange for setting a upper protection limit with a Capped Swap. The Capped Swap is a combination of a bought swap and sold call option. It offers the swap buyer a lower swap level in exchange for limited upside protection.

Three good reasons to use this strategy:

  • You do not need full upside protection
  • Attractive swap price
  • Flexibility in fuel supply

Benefits Disadvantages
Tailor-made coverage Limited upside protection
Flexibility in physical supply Potential basis risk
Reduced swap price  

Dennis Lysemose Andersen

Senior Oil Risk Manager


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