RISK MANAGEMENT
What are your risks as a fuel buyer?
- Lack of available supply?
- Volatile prices?
- Inability to define a workable budget?
- Competitors buying better and achieving a competitive advantage?
Guttman Oil’s Risk Management Solutions provide alternative fuel pricing programs designed to minimize those risks and help you gain control of your fuel budget.
Common reasons why customers rely on Guttman’s Risk Management Solutions:
- A trucking company seeks to avoid the volatile fuel price swings that result in earnings uncertainty from month to month
- A municipality wants to lock in the price of fuel that meets its budget and no longer be susceptible to price volatility throughout the year
- A heating oil distributor’s customers ask for a fixed price for fuel over the winter and the distributor wants to lock in the margin by guaranteeing their cost over the same period
- A construction company wants to be aggressive in its bid for a major road job and needs to lock in the price of fuel to remove any future cost uncertainty
- An electric power company sees a favorable pricing relationship between fuel oil and natural gas and wants to take advantage of the opportunity
- A mining company is concerned about product availability over the next several months and wants a program that will guarantee supply availability at prevailing market prices
- A gasoline retailer in the Southeast is concerned about the availability of gasoline during peak hurricane season and seeks to guarantee a portion of its total demand at prices that will help maintain current margins
Guttman Oil Risk Management Expertise
Our ability to execute a variety of tailored supply and risk management solutions is enabled by the following:
- Buying and selling physical product in the Gulf Coast, Chicago, and New York Cash Markets to take advantage of short term supply/demand imbalances
- Using petroleum futures to hedge against volatile fuel prices and lock in favorable economics
- Shipping product on the major pipelines to bring favorable pricing from one market to another and storing it utilizing our extensive network of throughput terminals
- Using our fuels market expertise, our industry relationships, and our sophisticated market data systems to identify and capture favorable pricing available anywhere in the global petroleum markets and deliver those economics to our customers locally
Available Risk Management Programs include:
- Firm Fixed Price Programs
- Firm Fixed Price Programs with a floating “trigger price”
- Cap Programs
- Collar Programs
- OPIS Index Pricing Programs
- Platts Cash Market Index Pricing Programs
- New York Mercantile Exchange Index Pricing Programs
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