Locking in the price of diesel
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11-29-2008, 06:08
Post: #5
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Locking in the price of diesel
What you may be neglecting is that all of these commodity options have
a "time value". You are paying a premium for the assurance that your price will be predictable over some period. (There is no free lunch.) Right now with the tremendous volatility in oil and gas prices I KNOW the time premiums are a relatively high percentage of the contract price. I'm not saying this won't work out for you but just cautioning you to anticipate and account for this time value premium. A reasonable guess is that fuel prices would have to go up 15-20% to make this even marginally worthwhile and 40-50% to make it worth the trouble. Now if you were planning a 20 bird caravan and paying for all the diesel, it would be a different matter. Regards, GPSGary 84FC35 |
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Messages In This Thread |
Locking in the price of diesel - David Brady - 11-28-2008, 12:57
Locking in the price of diesel - George Burke - 11-28-2008, 16:29
Locking in the price of diesel - Pete Masterson - 11-29-2008, 03:44
Locking in the price of diesel - David Brady - 11-29-2008, 04:41
Locking in the price of diesel - hippieforever3 - 11-29-2008 06:08
Locking in the price of diesel - David Brady - 11-29-2008, 06:15
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