Energy Risk Management
Price risk management in volatile energy markets
Whether the goal is to protect margins, secure budgets, minimize volatility, or adhere to lending requirements, Cargill works closely with customers to create solutions in today’s complex and dynamic energy markets.
Our team leverages industry insight, trading expertise and risk management to serve a wide range of customers, including petroleum and petrochemical producers, mid-to-large size corporations, commercial lenders, asset managers and investors. Our options, swaps and structured products are tailored to meet your pricing needs, volumes and market bias, whether you are producing crude oil or natural gas, powering a facility, fueling trucks, manufacturing food or bottling beverages.
At Cargill, when you are confident that you have made the right decision for your business, in your market, we are successful. We offer pricing solutions in most energy markets, including:
- Petroleum/PetChem: Crude oil, diesel, fuel oil, gas oil, gasoline, RBOB, heating oil, naphtha
- Natural gas emission & renewables
- Power
- Propane
- Gas formulas
- NGLs
- Resin and packaging: ethylene, polyethylene, propylene, polypropylene
Minimize Uncertainty. Maximize Opportunity.
Without a diversified risk management strategy, you could be compromising your margins, budget, and ability to be price competitive.
A reputation for strength and stability in commodities
Trading With more than 150 years of experience in commodities markets, Cargill is a strong, dependable counterparty, offering deep insight and expertise in volatile markets. Visit our corporate financial information page to review a five-year financial summary and credit rating information.
Dynamic energy hedging strategies
Through multiple financial instruments, our team works with customers to identify the appropriate hedging strategies and price risk solutions in today’s market. We provide:
- In-depth knowledge of markets and risk mitigation
- Financial guarantees and agreements with multiple counterparties
- Prospective analysis capabilities
- Stress testing and other analytics In-house administration and reporting functions
Cargill’s dynamic approach to hedging incorporates trade timing based on changing market factors and varied hedging instruments. We customize solutions which can encompass a variety of options, swaps, futures and structured products. This diversified and disciplined strategy may allow participation in both the upside and downside of market movement.
Contact us to learn how we can build an energy risk management solution that is right for you.
Commodity trading involves risks, and you should fully understand these risks before trading. This information shall not constitute a solicitation to buy or sell futures or options contracts, or OTC products. Please read the full disclaimer for more information.