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Financing

Basis ‘ What is it?

Feature Story The language every hedger should knowBy James M. Burr Basis is the difference between the physical price of fuel and the underlying futures market. It is the language of price for hedgers around the world, and it is the smallest denominator of risk that a hedger has. To a much greater degree than the actual flat price of ...

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What condition are your receivables in?

Feature Story By Tony DeLorenzoThe combination of significantly warmer than normal temperatures along with continued high energy costs and increased consumer bad debt has affected both consumers and home heating suppliers alike. Everyone from residential heating customers to hospitals, local and state municipalities, small businesses, schools and the motoring public are feeling the effects.A recent survey by NYSERDA and the ...

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Cocard interview

Feature Story Controlling cash flow COCARD executive says the positives of accepting credit cards outweigh the negatives This is an exclusive interview with Tracy Richmond, executive vice president and partner with COCARD, Inc., of Beverly, Mass.Fuel Oil News: What do you hear from fuel oil marketers as you speak with our readers around the United States?Tracy Richmond: The story we ...

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Desktop deposits

Feature Story Fuel-oil marketers streamline back office and improve cash flow with Cool Deposit Henry Oil Co. in Providence, R.I., and Exeter Fuel in Exeter, R.I., are two fuel oil companies that have taken the process of making a deposit into the 21st century. They have done this by signing up with Independence Bank’s new proprietary product, Cool Deposit. Cool ...

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The basics of hedging

Feature Story What is it, really, and who’s doing it? By James M. Burr The recent increase in volatility is causing a major shift in the marketplace. Accounts that five years ago swore that there was no need to learn how to hedge are attending classes. Marketers that scoffed at the idea that the age-old practice of midnight pricing would ...

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The basics of options

FeaturesWhen playing the market, options can be as simple or complex as you desire to make themby James M. Burr This month we will discuss the basics of options. You cannot effectively use options tools in your hedging portfolio until you understand how they work. This discussion will focus on how options work, while future articles will delve into how ...

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Managing your risk

FeaturesHow to make a swap contract work for you and your business By James M. Burr Last month we discussed the basics of futures contracts. This month, we are going to discuss the basics of swaps.For the purposes of this article, we will assume that the terms ‘swaps contract,” ‘derivatives” and ‘over-the-counter contracts (OTCs)” are all interchangeable.A swap contract is ...

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Managing your risk

FeaturesSeries to focus on the fundamentals of energy risk managementBy James M. Burr This is the first in a series of articles on energy risk management. These articles will cover the fundamentals of futures, options, swaps, basis and spreads. Each of these tools will be analyzed as to how they can be used to protect various areas of risk. We ...

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