Refined Fuel Risk Management with an Offer To Purchase Contract from United Cooperative
Jan 04, 2021
With refined-fuel market volatility changing daily, it’s never too late to start managing your risk to best meet your needs and profitability levels. Whether you push 500 gallons or 25,000 gallons through your business, annually, the best risk can be negotiated with an Offer to Purchase (OTP) contract from United Cooperative.
Risk management begins with your need, goals, and target price in mind. If you start by contracting some gallons, leaving some on an OTP with a lower target price can help you reach a better average. If that target price hits within the pre-determined timeframe, United Cooperative automatically contracts those gallons. If the targeted price doesn’t hit, or the market starts moving in an unfavorable direction, you have the option to automatically move to contract and cancel the pending OTP. If the targeted price never hits, the OTP expires, and you will pay the truck price or contract price at the time of delivery. Depending on your annual usage, utilizing multiple contracts and layering in gallons with an OTP or two, can help you achieve your goals and beat your average year over year.
Upgrading from a straight #2 diesel to Cenex Premium Diesel products can increase your efficiency. Increased efficiency directly impacts your bottom line, helping you reach profitability without the extra work. Cenex also carries multiple options for premium winter-blend fuels. Having a product with additives blended at the terminal, gives you a higher-quality blend, and saves you time dealing with a splash-blended additive that may not be working to its fullest potential.
A certified energy specialist from United Cooperative can help you start with refined-fuel risk management. They are the best source to discuss your goals and objectives with based on annual usage, type of fuels needed, and size of your storage tanks and fleet.
No matter your size or scale, you can RELY ON US to help you reach your goals and develop a plan, with the best returns, to meet your production and profitability needs.
Call 1-800-924-2991 and ask to speak to an energy sales specialist.
Risk management begins with your need, goals, and target price in mind. If you start by contracting some gallons, leaving some on an OTP with a lower target price can help you reach a better average. If that target price hits within the pre-determined timeframe, United Cooperative automatically contracts those gallons. If the targeted price doesn’t hit, or the market starts moving in an unfavorable direction, you have the option to automatically move to contract and cancel the pending OTP. If the targeted price never hits, the OTP expires, and you will pay the truck price or contract price at the time of delivery. Depending on your annual usage, utilizing multiple contracts and layering in gallons with an OTP or two, can help you achieve your goals and beat your average year over year.
Upgrading from a straight #2 diesel to Cenex Premium Diesel products can increase your efficiency. Increased efficiency directly impacts your bottom line, helping you reach profitability without the extra work. Cenex also carries multiple options for premium winter-blend fuels. Having a product with additives blended at the terminal, gives you a higher-quality blend, and saves you time dealing with a splash-blended additive that may not be working to its fullest potential.
A certified energy specialist from United Cooperative can help you start with refined-fuel risk management. They are the best source to discuss your goals and objectives with based on annual usage, type of fuels needed, and size of your storage tanks and fleet.
No matter your size or scale, you can RELY ON US to help you reach your goals and develop a plan, with the best returns, to meet your production and profitability needs.
Call 1-800-924-2991 and ask to speak to an energy sales specialist.
Joseta Halbur
Energy Sales Specialist | Eastern Region
