Crude oil producers were presented with a unique opportunity to lock-in forward pricing following the September 14 attacks on key Saudi Arabian oil facilities. The damage disrupted over five percent of global production. In the days after, there was an immediate and historic price spike followed by a swift retreat to pre-attack prices. Some companies were able to capitalize on the chance to increase their hedge positions at higher levels. However, many producers missed out because they weren’t prepared to react quickly.
Partnering with AEGIS ensures that oil and gas producers, investors and capital providers are ready for unforeseen events. Below is the timeline of the actions that AEGIS took as the Saudi situation unfolded:
Minutes after the story broke, AEGIS got to work on client communication and action plans. AEGIS kept clients informed and recommended tailored hedge strategies through real-time Market Alerts (via email and Flow mobile app), live pop-up webcasts, and one-on-one meetings, calls and emails. On Sunday evening, the team was ready for the Asian open at 5pm CST and hedged over 1 MMBbls on behalf of clients. On Monday, AEGIS set a company trading-day record by hedging over 10 MMBbls. Total volume executed the week following the attack was over 16 MMBbls, and, as of October 2, the mark-to-market gain of those hedges was just over $58 million.
A conservative hedge strategy is essential to overall financial risk-management and deserves the type of attention that AEGIS delivers. AEGIS clients receive the benefit of a team of experts who take ownership and act quickly when opportunities arise.
About AEGIS Energy Risk
AEGIS Energy Risk is the leading fintech and advisory solutions provider for energy derivatives, having been recognized as the Hedge Advisor of the Year for the last three years by Energy Risk Magazine. AEGIS’s proprietary Flow software and unmatched depth in the energy and trading markets combine to power energy producers, investors and lenders as they deploy, grow and protect capital. With over 160 oil and gas entities producing over 2.5 million BOE/d, the AEGIS platform provides unmatched scale and insight for each of its users. For more information, please visit www.aegis-energy.com.