Strategies for using financial swaps effectively
May 4, 2021 By Mark Rachal
Retailers use swaps to capture opportunities, turn unknown future prices into knowns and maintain flexibility to adjust positions when conditions change.
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Retailers use swaps to capture opportunities, turn unknown future prices into knowns and maintain flexibility to adjust positions when conditions change.
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Mark Rachal of Cost Management Solutions explores some of the advantages of the propane swap market in price risk management.
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Retailers that evaluate market conditions and establish buying criteria based on that evaluation may find that they captured the lowest price of the year.
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U.S. retailers that have received propane imports by rail from Canada may find product harder to come by and may need to consider other sources.
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Propane retailers should use all of the market knowledge and risk management tools available to lower supply cost, says Mark Rachal of CMS.
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Two propane supply trends could warrant some caution about buying propane for next winter, says Mark Rachal of Cost Management Solutions.
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Biting off a little 80-cent propane for next winter might not taste as bitter as we imagine, says Mark Rachal of Cost Management Solutions.
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Lower domestic crude production impacts the amount of propane coming from natural gas processing, says Mark Rachal of Cost Management Solutions.
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Along with tighter propane fundamental trends, crude trends point toward a higher price environment ahead, says Mark Rachal of Cost Management Solutions.
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The Midwest has been oversupplied and low-valued long enough that it lacks investment to meet needs in high-demand periods, says Mark Rachal.
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