Regardless of how fast retailers turn their inventory or whether they are selling branded or unbranded fuel, they have two significant risks: at-the-pump margins shrinking due to rapid price increases and declining inventory values as prices move lower.
The FCM Division of INTL FCStone Financial Inc.'s energy group helps C-Stores protect retail margins and inventories in today’s volatile energy market through sound risk management strategies. Our Risk Management Consultants offer objective advice on choosing the best risk management instruments and cost-effective strategies along with rationales regarding the recommendation and the risk vs. reward profile. We can also assist customers in analyzing their physical fuel market options to identify any opportunities.
The energy group’s expertise in the futures and OTC market coupled with experience in the physical cash markets provides our customers with valuable service and information. From helping to negotiate physical contracts to scheduling and shipping barrels in the pipeline, the energy group can handle many of your supply side needs.
Our services include:
- Hedging C-Store inventories
- Hedging the cost of increasing credit card fees
- Complete analysis of current and proposed supply contracts
- Negotiating through put agreements and new supply contracts
- Assisting in spot market purchases
- Pipeline shipping and scheduling
- Position tracking - daily mark-to-market statements and Portfolio manager - our online hedge record program
- Assisting in the development of corporate risk management policies for petroleum products
The trading of commodities and derivatives such as futures, options, and swaps involves substantial risk of loss and may not be suitable for all investors. Advisory services as well as the trading of futures and options is available through various subsidiaries including but not limited to the FCM Division of INTL FCStone Financial Inc. Public Disclosures for the FCM Division of INTL FCStone Financial Inc. The trading of over-the-counter products or swaps is available through subsidiary INTL FCStone Markets, LLC to individuals or firms who qualify under CFTC rules as an eligible contract participant. Please click here for the full disclaimer