| Commodity | Tenor | Recommended Structure | Notes |
|---|---|---|---|
| NYMEX WTI | Bal 2025 | Swaps or Tight Collars | Producer: WTI has moved lower since trading as high as $80/Bbl in January. Clients already well hedged should look to swap remaining volume. Producers with substantial volume to add may look to collars if they can tolerate a floor in the low $60s to retain some upside participation. Fundamentals support higher prices through the end of the year. |
| NYMEX WTI | Cal 2026 | Collars or Swaps | Producer: A downward sloping forward curve is hurting producers hedging into years two and three. We recommend clients that are more price-sensitive to utilize swaps to lock in favorable economics. Producers that can tolerate a lower floor can fight backwardation with a collar. |
| NYMEX Henry Hub | Bal Summer | Swaps | Producer: We recommend hedging with swaps due to our neutral outlook with a bearish lean for the balance of the summer strip. |
| NYMEX Henry Hub | Nov25-Mar26 | Collars | Producer: The winter strip is down substantially from its March high. We remain bullish this tenor and recommend utilizing costless collars to take advantage of the asymmetric call skew. |
| NYMEX Henry Hub | Apr26-Oct26 | Swaps or Tight Collars | Producer: AEGIS holds a bullish view on prices for this tenor, and with call skew elevated even for summer months, producers may find value in costless collars.
|
| NYMEX ULSD | Bal 25 | Swaps | Consumer: Prompt diesel prices have traded lower alongside crude, following a short-lived rally around the start of the year, driven by anticipation of new US sanctions on Russia. Fears of a weakening global economy due to US tariffs have weighed on product prices in recent weeks. |