Oil Risk Management
Implementing a prudent Energy Risk Management program can protect your company from the negative financial and operational impacts of unpredictable movements in the Energy markets. Successful programs apply forward-looking market analysis to your company’s unique exposure to the Energy market.
By entrusting your Energy Risk Management concerns to APEXPERT, you can leverage the expertise of our Energy experts in helping you effectively mitigate risk. APEXPERT works to lessen the impact of volatile energy costs by providing a suite of Energy Risk Management services built upon the following:
Analysis of existing exposure
Once we on-board a client, we offer the service to perform an in-depth analysis of their existing energy exposure to identify key risks and also to assess how effective their hedges will be in a number of scenarios possible in the future.
Customized hedging recommendations
We always strive to position our clients ahead of time. Our recommendations are backed by fundamental and technical analysis of decades of data. Most importantly, the hedging strategy recommendations are definitive, actionable and steers you to Energy market solutions tailored to your requirements.
Life cycle management of hedged positions
We believe a continuous assessment of existing risks, changing Oil market fundamentals and hedging requirements of your company, is needed, to be able to weather market environments and stay true to your core business. Towards this end, we offer the service to assess the realized effectiveness achieved by executing our hedging recommendations, in the ever changing dynamics of the Oil ecosystem. We propose timely changes to the hedging strategy, as required by changing demand and supply fundamentals.
Oil Research and Market Intelligence
As conditions change in energy markets across the globe, windows of opportunity are continually opening and closing. Keeping track of these moving parts is a time-consuming task that involves an overwhelming amount of information. For e.g. Crude Oil markets exhibited a low volatility range-trading behaviour between mid-2016 to mid-2017. In contrast, since July 2017, it is showing signs of breaking out of the 2 year range. The key question now is whether we can see Oil back to 100$+ or will it revert back to 50s?
Oil industry research & in-depth analysis
We continuously study the supply, demand and inventory – fundamental parameters of the Oil and refined product markets, in addition to tracking key market moving events – OPEC announcements, Global geopolitics, etc. We analyse decades of Oil data to arrive at reasonable assumptions, and cross check positioning of market participants to validate those assumptions.
Macro-economic trends
While the Oil prices are dictated by fundamental forces of supply and demand, an analysis of Oil market is not complete unless a full macro picture is understood and linked back to Oil markets. This is due to current global markets where assets do not trade in silo, and connecting the macro-dots can lend significant clues to upcoming Oil movements.
We hope for the strength of our research to be visible in medium and long term cost savings for our clients, hence we place due emphasis on a process of continuous assessment to maximize alignment with fundamentals.