Search results
Results From The WOW.Com Content Network
implementation of a fuel price risk strategy 4 Monitor and review. An alternative to the above described process is the following: [2] 1 Identify, analyze and quantify the fuel related risks 2 Determine tolerance for risk and develop a fuel price risk management policy 3 Develop fuel price risk management implementation strategies
Fuel pricing software is intended to replace manual or spreadsheet-based processes that could delay the update of fuel costs and jeopardize profit margins. Delayed updates of fuels costs can cause fuel buyers to pay more than necessary, with day-to-day price swings occurring at 3 cents nearly 50% of the time and 5 cents at just over 25%. [8]
Market risk is the risk of losses in positions arising from movements in market variables like prices and volatility. [1] There is no unique classification as each classification may refer to different aspects of market risk. Nevertheless, the most commonly used types of market risk are:
Specifically, the amount of fuel hedged has been reduced from approximately 80% to 60% of fuel-price-related earnings exposure, while maintaining the use of a costless collar.
WEX Extends Its Existing Fuel-Price Risk Management Program SOUTH PORTLAND, Maine--(BUSINESS WIRE)-- WEX Inc. (NYS: WXS) , a leading provider of corporate payment solutions, announced today that ...
Gas prices within the last 10 years highlight how volatile the market can be. When looking at historical data, gas prices were the same in 2011 as they were in 2023 — $3.52 per gallon.
The higher the gasoline volatility (the higher the RVP), the easier it is to evaporate. The conversion between the two fuels occurs twice a year, once in autumn (winter mix) and the other in spring (summer mix). The winter blended fuel has a higher RVP because the fuel must be able to evaporate at a low temperature for the engine to run normally.
The cost of fuel hedging depends on the predicted future price of fuel. Airlines may place hedges either based on future prices of jet fuel or on future prices of crude oil. [1] Because crude oil is the source of jet fuel, the prices of crude oil and jet fuel are normally correlated.