A conversation about hedging oil price risk…

May 23, 2018 by Jim Colburn Leave a Comment

As energy prices rally, we can get a sense of what large speculators are doing from the CFTC’s Commitment of Traders report. But what are hedgers doing? To find out, Andy Lebow and I had a conversation with Andy Furman a risk management consultant with Risked Revenue (R-squared). Risked Revenue is an independent commodity risk advisor that helps clients build and maintain hedge programs. Their clients include S&P 500 E&P’s, private equity companies, utilities and other oil producers and consumers. Andy Furman sheds some light on issues facing hedgers and shows how some make hedging decisions.

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

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