If I am producing 1,000 bbls of oil per month and I want to make sure I get at least $60 per bbl over the next three years. What would be the best trading strategy? This is probably a stupid question, but it's the only way I am going to learn. Thanks for any information.
you could buy a WTI put - here is a link to the cme website. http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude_contractSpecs_options.html of course you have to deal w/ what timeframe to buy/deal w/ contango/etc. airlines deal w/ this every day. also mexico has a huge hedging program in place.