QUARTERLY OIL MARKET OUTLOOK
Get our take on recent events in the oil market and our opinions on the direction the market is likely to take...
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Swaps for oil suppliers
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:
- Decreasing fuel prices could seriously undermine your business
- You have a set budget and would like to lock in your future oil prices
- You would like effective security against fluctuating oil prices
| Benefits | Disadvantages |
| Protection from price volatility | Opportunity loss if market prices rise |
| Flexibility in physical supply | Potential basis risk |
| No upfront premium |