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Demand risks:
Environmental risk:
Event risks:
Financial risks:
Input risks:
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Liquidity risk:
Operational risk:
Personnel risk:
Political risk:
Property risks:
Reputation risk:
Speculative risks:
In energy finance,
Refineries want to hedge themselves against
increases in the price of oil, and
Oil producers want to hedge themselves
against decreases in the price of oil.
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2.
firm.
1. Speculate
2. Hedge
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1.
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South Africa
Hong Kong
Hong Kong Exchanges and Clearing (HKEx)
Africa
Philippines
Singapore
Singapore Commodity Exchange (SICOM)
Singapore Exchange (SGX)
Eurex Exchange
Euronext
Austria
Energy Exchange Austria
OMX
Belgium
Euronext Paris
Germany
Turkey
Bursa Malaysia
Nepal
Norway
Imarex
Poland
GPW (Warsaw Stock Exchange)
Romania
Australia
Australian Securities Exchange
AQUA Markets
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Cash Price
Futures Price
(i.e., Spot Price)
July 24, 2012, cash price
$88.41 per Bbl
$88.81 per Bbl
January 2, 2015, cash price
$95.50 per Bbl
of $96.10
$7.09 per Bbl
Result:
Cash purchase price of
$96.10 per Bbl
crude oil
Minus crude oil
$7.09 per Bbl
futures gain
Net purchase price of
$89.01 per Bbl
crude oil
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