Forward fixing - the smart way to buy fuel
The oil markets have been in turmoil for around 18 months now, with trading being the most tumultuous seen in years. In fact, oil price volatility has climbed to its highest since 2009 as traders try to price-in the uncertainty around supply cuts and project demand for petroleum products as the global economic recovery falters.
Global oversupply has dramatically driven down the price of oil, a welcome relief for distributors, hauliers, businesses and indeed anyone buying and using fuel. However, there is growing consensus that these super low rates cannot last. The big question is how long will this trend continue and when will prices start to rise again – as rise they surely will.
Wholesale trading of fuel is, and always has been unpredictable – the markets are ever-changing, temperamental and a law unto themselves - but it is what Mabanaft knows and does very well indeed. The company has been importing fuel and selling wholesale to the UK for nearly 60 years and has built a very loyal customer base. “Our customers trust us to deliver reliability of supply, fair and transparent pricing and excellent customer service,” said Marketing Manager Martin Cook. “We go out of our way to provide advice and support, and make it easy for them to purchase fuel regardless of changes in the market. Now, with the market trading at a 13-year historic low, we are offering our customers the opportunity to lock-in some of these low rates for up to 24 months, and we are one of the very few wholesalers willing to offer this facility”.
Make forward fixing part of your purchasing strategy.
Forward fixing buys certainty and for businesses looking to plan ahead and manage their future fuel expenses this makes a lot of sense. It can help guard against unexpected peaks and troughs in operating expenses that can literally turn a profit into a loss overnight.
With rates that are unanimously acknowledged to be some of the lowest since 2003, forward fixing is almost certainly going to pay dividends down the line. Moreover, there are definite benefits to having a guaranteed, consistently fair, fixed price for fuel.
“Our experienced marketers can provide forward pricing indications to help customers make an informed decision on exactly when to fix over an extended period, as well as offer guidance on the choice of deal mechanisms available to further minimise exposure to price volatility,” said Martin. “Customers can choose to forward fix a percentage of their contract, and then spot buy the remainder, thus retaining a degree of flexibility.
“Customers know that we will always go the extra mile to ensure that they achieve value. The option to forward-fix really is a fantastic way to lock in the current low rates and allow our Customers to budget for the coming year”.
To find out more about forward fixing call us on 0207 802 3300, or email firstname.lastname@example.org or visit www.mabanaft.co.uk
See all news