Comments from Richard Bell, CPA/Attorney at Law
Is it time to pull a Southwest Airline hedge strategy? With a barrel of oil ranging between $115 to $120 a barrel, I would advise consideration of using options to protect the possible price upside on barrel of oil priced thru the winter, while leaving the ability to share in the gain, if oil falls below the $115 mark.
In the alternative, discuss with your fuel vendor, purchasing fuel on a forward contract basis, normally done in 42,000 gallon increments.
Whether you hedge or not, you should be on a fuel program with your vendors, at the lower of retail minus rebates, or cost plus.
If questions, or discussion points, let Jeff or I know. You can call 501.753.9700 or e-mail me at richard.bell@bellandcompany.net
Is it time to pull a Southwest Airline hedge strategy? With a barrel of oil ranging between $115 to $120 a barrel, I would advise consideration of using options to protect the possible price upside on barrel of oil priced thru the winter, while leaving the ability to share in the gain, if oil falls below the $115 mark.
In the alternative, discuss with your fuel vendor, purchasing fuel on a forward contract basis, normally done in 42,000 gallon increments.
Whether you hedge or not, you should be on a fuel program with your vendors, at the lower of retail minus rebates, or cost plus.
If questions, or discussion points, let Jeff or I know. You can call 501.753.9700 or e-mail me at richard.bell@bellandcompany.net
