Diesel Prices

[dzzz]

Anyone hedging future diesel prices?

I would like to budget fuel for the next three years. Futures are pretty flat, and I would be fine paying current prices. Anyone do this?

 

[evilfij]

Buy a future or two. It would not be a perfect hedge, but it would be close enough.

 

[dzzz]

The futures out to three years are currently almost flat. I'm fine with locking in $3.00/gallon.

Looking into it, the easiest may be to buy USO "stock". It is designed to trade close to the price of heating oil (essentially the base material for diesel)

If I budget $5000 for a long trip, I essentially lock in the current price through buying $5000 of USO....... I think.

 

[charlieaarons]

I bought shares of Suncor Energy and Canadian Natural Resources.
Price of oil goes up, they go up. They pay dividends.
There are many ways to hedge fuel prices.

Charlie