Many oil and gas producers consume diesel in their daily operations. As diesel prices have hit new record highs, producers have paid more attention to this cost and how to mitigate it.
Most think about the price at the pump, but producers looking to reduce diesel price-risk exposure need to think about it a little differently. Maybe hedging the diesel crack spread is more appropriate.
Commodity Interest Trading involves risk and, therefore, is not appropriate for all persons; failure to manage commercial risk by engaging in some form of hedging also involves risk. Past performance is not necessarily indicative of future results. There is no guarantee that hedge program objectives will be achieved. Certain information contained in this research may constitute forward-looking terminology, such as "edge," "advantage," 'opportunity," "believe," or other variations thereon or comparable terminology. Such statements and opinions are not guarantees of future performance or activities. Neither this trading advisor nor any of its trading principals offer a trading program to clients, nor do they propose guiding or directing a commodity interest account for any client based on any such trading program.