Derivatives and risk management

Risk management with financial hedging

We know how important it is to know your margin beforehand. That is why we set prices through financial hedging.

  • Do you know what your margin will be?
  • We are aware of the issues with buying and selling a product when you don’t know the priceat the time the physical transaction is made. The price depends on the volatility of international markets. 
  • To avoid this risk, Global Oil offers the opportunity to set the price beforehand using financial hedging.

What are the benefits of working with us?

We set a price that is currently variable and uncertain.
We delay or bring forward the time period that your purchase or sale price depends on.
We set a margin for a specific time period by setting the purchase and sale price at the same time.

How do we do it?

Our team of traders continuously tracks the financial and energymarkets to hedge for the Global Oil Group and its stakeholders, including you.
We have extensive knowledge and powerful tools for hedging. We offer you financial instruments such as futures, swaps, and options.

What does your hedge consist of?

Here is an example of how we set a purchase or sale price to secure a margin.

You have bought fuel (physical) today, but the price won’t be formed until next month, with the average quoations of HSFO NWE for that specific month

This leaves you with the uncertainty of not knowing at what price you’re finally buying the fuel.

Save on your purchase

Here is an example of how we set a purchase or sale price to secure a margin.

With a simple subtraction: mission accomplished.

Market value

RestaSwap value

Resultado

Savings

You will have covered the increase in market value and also locked in the price.

Let’s chat! If you have any questions, get in touch.