Consumers exceeding bank credit lines slows oil hedging

Many have large unrealised losses from trades in second half of 2014

oil field

Weaker oil consumers, such as airlines, shipping firms and bus companies have been unable to profit from the recent fall in oil prices because they are already exceeding their bank credit lines with mark-to-market losses on unexpired hedges taken out in the second half of 2014.

Since June last year, front-month Brent North Sea crude oil futures have fallen from $115.06 a barrel (/bbl) to below $50/bbl in January. Despite the recent rally, oil is still below the previous six-year low seen in

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: