When customers demand the security of a price protection program to safeguard them against volatile market conditions, we are ready to help.
Global works with heating oil retailers and diesel fuel distributors to develop balanced risk management programs that offer protection for both dealer and consumer. Our risk management tools are among the most inventive and flexible in the industry and are supported by a seasoned sales team.
Global provides the following risk management programs:
- Fixed Price Contracts
Lock in fixed price to take delivery for future months purchased.
- Basis Contracts
Customer has the ability to lock in a differential. Customer pulls the trigger on the merc at a later date.
- Prompt Contracts
Lock in a price today. If market is down, customer participates immediately in a lower price. 10 days to pull gallons.
- Put Option
Hedge for downside protection, usually based on a wet position taken.
- Call Option
Hedge for upside protection, usually based on a position taken for basis deal contract.
- Spread Deal
Customer commits to purchasing future gallons based on the “spread” of the lifting month and the forward month. Allows customer to lock in a lower differential if forward month value is higher (carry) than lifting month.
- Storage Transactions
Global stores product at customer’s bulk plant and prices it to customer at a later agreed upon date. Customer participates in a lower differential if market has sufficient carry.
To learn more about the benefits of these tools and programs, please contact the Global Marketing Department by or by phone at 800-685-7222.
Download our Risk Management Brochure.
Legal Disclaimers & Terms and Conditions |
Global Companies LLC, Global Montello Group Corp.,
Global Energy Marketing LLC and Alliance Energy LLC
are subsidiaries of Global Partners LP
800 South Street, Suite 500, P.O. Box 9161, Waltham,
MA 02454-9161 | 781-894-8800
© 2019 Global Partners LP, All rights reserved.