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News The Oil Market Quarterly Outlook July'18 Read now

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.

Swaps

A Swap is a paper hedge agreement that allows you to fix your fuel prices at a predefined level, independent of future market movements.

Three good reasons to use this strategy:

  • Rising fuel prices could seriously undermine your business
  • You have a set budget and would like to lock in your future fuel prices
  • You would like effective security against fluctuating fuel prices

Benefits Disadvantages
Protection from price volatility Opportunity loss if market prices fall
Flexibility in physical supply Potential basis risk
No upfront premium  

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