FCStone, LLC’s energy group helps petroleum marketers mitigate price risk exposure and protect margins in today’s volatile energy market through sound risk management strategies. FCStone’s Risk Management Consultants offer objective advice on choosing the best risk management instruments and cost-effective strategies along with rationale regarding the recommendation and the risk vs. reward profile.
The energy group’s expertise in the futures and OTC* market coupled with experience in the physical cash markets provides our customers with unparalleled service and information. From helping to negotiate physical contracts to scheduling and shipping barrels in the pipeline, the energy group can assist you with many of your supply side needs.
Trading in exact increments*
In the past, customers were limited to trading in 42,000 gallon increments which made it difficult for marketers to effectively manage their risk. FCStone now offers customers the ability to hedge purchases and sales in any increment for multiple products.
Some of our services include:
- Assisting marketers in developing the unique contracts to offer their customers
- Hedging bulk storage
- Hedging pipeline inventory
- Complete analysis of current and proposed supply contracts
- Negotiating throughput agreements and new supply contracts
- Assisting in spot market purchases
- Pipeline shipping and scheduling
- Position tracking, including daily mark-to-market statements and Portfolio Manager, our online hedge record program
- Assistance in the development of corporate risk management policies for petroleum products
Education is one of the most important aspects of the relationship with our customers and helping their business evolve in this ever changing market. FCStone customers have access to:
- Energy risk management seminars are offered throughout the year and are tailored to meet the needs of jobbers, retailers, and end-users of energy products
- On-site hedging seminars custom-tailored to your operations
- Daily market commentary and weekly reports on market fundamentals
- Proprietary market research and historical studies.
*OTC products are traded through INTL Hanley, Inc.