Avoid second-guessing what the market prices will do next. One of the major factors threatening the growth of any business is the uncertain cost of fuel and energy.

The market fluctuates - your fuel and energy spend shouldn't. World Kinect Energy Services recommends that any energy procurement plans should always be integrated with a solid risk management strategy. We help you stay on budget and to seize market opportunities by hedging your fuel and energy, whether we physically supply it to you or not. In addition to advisory, we can execute price hedges, utilizing a range of price risk management instruments with the aim of minimizing volatility to your business.

If you do not have the ability to easily pass on an increase in electricity, natural gas, and fuel prices to your customers, our price risk management experts provide the insight and data to help you hedge your commodity prices and smooth out potential market price fluctuations. World Kinect helps you assess how much risk is appropriate to take on to strike the right balance between uncertainty (your unhedged supply) and price certainty (hedged supply).

How it Works. Price Risk Management Process 

Our process is dynamic and collaborative. We start by listening to understand your objectives and price risk tolerance. From there,  we determine the appropriate risk management, commodity, and non-commodity cost management, and hedging strategy that meets your unique goals. This is an ongoing process of continuous evaluation, mitigation, and improvement against your objectives for cost, carbon, and supply.

How It Works. Price Risk Management Models

How it Works. Physical vs Financial Hedging 

Our range of Price Risk Management options for fuel and energy includes all major financially settled products globally, and many less common hedging products and indices locally. Credit lines are provided separately for Physical Hedging (embedded in your World Kinect physical supply) and Financial Hedging (for commodities not supplied by World Kinect).