hedging

Keeping Some Speculators out of the Oil Market May Lead to Higher Oil Prices

Michael Giberson From Fortune-Investor Daily: If Congress or the CFTC forces through stiff curbs on futures trading by so-called “speculators” — i.e. investors who use futures to bet on future price movements but don’t buy actual oil — it may lead to higher, not lower, oil prices over the long term. Why? Imagine you’re an …

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Crude Oil Price Volatility

Michael Giberson The New York Times observes that crude oil price volatility has been exceptionally high for the last eighteen months. (Hmmm. Eighteen months ago … January 2008 … the Iowa caucuses … the U.S. presidential primary season gets underway in earnest … nahhh, couldn’t be all due to presidential politics.)  Actually, eyeballing the chart …

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Fuel Hedging: Sometimes You Get the Bear, Sometimes the Bear Gets You

Lynne Kiesling One of my father’s default tag lines was “sometimes you get the bear, sometimes the bear gets you.” I use this phrase frequently when discussing hedging future price changes — if prices move in the direction you anticipated, you earn a profit, if they move in the opposite direction, you earn a loss. …

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