Low Brent creates window of opportunity for hedgers, say analysts
Swooning prices for Brent crude oil have created a window of opportunity for firms to lock in their fuel costs via forwards and options, before prices pick up again towards the end of the year, say analysts.
North Sea Brent crude oil futures have seen a sharp drop in prices over the past few months. From a peak of around $119 per barrel (/bbl) in mid-February, the contracts dipped to under $100/bbl during April. Having briefly rebounded in May, the front-month futures contract closed at $100.39
More on Oil & refined products
Energy Risk at 30: Learning from the past
Energy Risk looks back at the seminal events and developments that have shaped today’s energy markets
Why Iran tensions failed to rattle markets
Despite initial fears, traders say risks were signposted and investors had deleveraged after April
Oil and products house of the year: Macquarie Group
Energy Risk Awards: Bank pioneers innovative deals in illiquid markets, taking on esoteric risk
Podcast: should negative oil prices be allowed?
Did negative oil prices signify the market was operating effectively, or that something was wrong?
Podcast: the future of retail investment in oil
Will negative prices and big losses curb retail investors’ appetite for oil futures over the longer term?
Podcast: Kaminski and Ronn on negative oil and options pricing
The market is gravitating to the Bachelier model as an alternative to Black 76
Negative oil prices put spotlight on investors
What part did Bank of China and other investors play in last month’s oil rout, asks derivatives veteran
How Onyx came from nowhere to conquer oil swaps
In just four years, market-maker has become the largest provider of liquidity in energy derivatives
