Fuel oil price changes have a significant impact on the economics of shipping and international commodity deals, making efficient management of price risk a necessity for all participants in these markets.
In derivatives markets, the existing paradigm is designed for organisations whose core business is oil trading. The result of this is that companies which use fuel oil derivatives primarily for risk management, which trade infrequently or trade in smaller volumes, can find benchmarking fair value and obtaining forward price transparency difficult. Trading smaller clip sizes may also come at a significant premium to more standard transactions, making the market expensive for some users.
CLTX’s Fuel Oil market breaks this paradigm by offering a level playing field to all through consistent and reliable price discovery, coupled with the ability for users to transact at a transparent and fair price. Whether managing fuel exposure for a single cargo or voyage, a specific period, a COA or a basket of risks, hedging can be tailored to match the individual organisation’s actual need and executed at the time it arises.
|PRODUCT DESCRIPTION||3.5 % FOB Barges Rotterdam|
|FINAL SETTLEMENT PRICE||The arithmetic average of Platts* daily spot assessments in the contract month|
|CONTRACT SERIES||Months, quarters and calendar years out to a maximum of 36 months|
|SETTLEMENT||The first business day following the expiry day|
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