Marine Fuel Hedging Under the Sulfur Cap Regulations

24 Pages Posted: 22 Oct 2021

See all articles by Frantisek Cech

Frantisek Cech

Charles University in Prague - Institute of Economic Studies

Michal Zitek

Charles University in Prague - Institute of Economic Studies

Date Written: October 15, 2021

Abstract

We argue that marine fuel consumers and producers can reduce the uncertainty regarding their portfolios under environmental regulations aimed at air pollution reduction. Our results show that uncertainty can be reduced up to 72%. We also identify Gasoil futures as the universal hedging instrument to manage uncertainty.

Keywords: marine fuels, hedging, IMO 2020

Suggested Citation

Cech, Frantisek and Zitek, Michal, Marine Fuel Hedging Under the Sulfur Cap Regulations (October 15, 2021). Available at SSRN: https://ssrn.com/abstract=3947516 or http://dx.doi.org/10.2139/ssrn.3947516

Frantisek Cech (Contact Author)

Charles University in Prague - Institute of Economic Studies ( email )

Opletalova 26
Praha 1, 11000
Czech Republic

Michal Zitek

Charles University in Prague - Institute of Economic Studies ( email )

Opletalova 26
Praha 1, 11000
Czech Republic

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