Hedging contributions… EIA – Commodity Research Group

April 18, 2019 by Jim Colburn Leave a Comment

The EIA’s always excellent “This Week In Petroleum” includes a very interesting chart showing hedging contributions to revenue for oil producers, here… The chart shows only net gains or zero, I’m not sure where hedging losses show up in the chart…

“Contributions to revenue from derivative hedges—which increase in value when prices decline— for these 43 companies reached the largest total for any quarter since the fourth quarter of 2014 (Figure 3). During the entire 2013–18 period, financial hedging was a source of revenue less than half of the time, whereas in other quarters it is listed as a net loss from derivatives and appears in Figure 2 above.”

And, from the same article:

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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