| Commodity | Tenor | Recommended Structure | Notes |
|---|---|---|---|
| NYMEX WTI | Bal 2026 | Collars | Producer: The ongoing war in the Middle East has severely altered global crude flows and forecasted oil balances for the rest of the year. A lack of progress in peace negotiations point to higher prices for longer. Elevated option volatility and skew favoring call options mean collars are attractive for oil producers. |
| NYMEX WTI | Cal 2027 | 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 or Tight Collars | Producer: Weather throughout the past winter and spring has been a drag on prices. Fundamentals still look positive when you adjust for the weather-related demand. Even at lower prices options markets are still providing producers with asymmetric upside on costless collars. |
| NYMEX Henry Hub | Nov26-Mar27 | Collars | Producer: While this strip is down significantly from recent highs, we remain bullish. LNG demand should continue to move higher as Exxon Golden Pass and Cheniere Corpus Christi continue to add export capacity. We continue to favor upside friendly structures to allow for upside participation. |
| NYMEX Henry Hub | Apr27-Oct27 | 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.
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