Fuel hedgers bemoan bank retrenchment from commodities

Delta Air Lines sees fewer counterparties for bilateral trades

Hedgers such as Delta Air Lines are having a harder time managing their exposure to fuel prices as banks retreat from commodity markets, attendees at Energy Risk Summit USA heard in Houston on May 21.

Ben Bergum, director of fuel hedging for the Atlanta-based airline, said the declining number of bank counterparties meant Delta was now relying more on cleared derivatives for its hedging transactions, forcing it to post additional margin.

"In the past six months, there has been a noticeable decli