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...
Read more
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 |