Psychorex (@Psychorex) on getquin

3Mon·

This morning I decided to hedge our family against the fluctuating oil price for our old heating system (as long as it is still running).

The aim is to hedge against the volatile oil price, as I am forced to buy oil exactly when the tanks are empty. This can be in a low or in a high.

For this purpose, I have calculated half the expected price for a full tank in $CRUD (-1.31%) and thus based on the WTI (West Texas Intermediate). The price of my purchased shares at [€8.3853] is a pretty good price compared to the prices in 2024.

In addition, I now invest €250 each month via a savings plan in $BRNT (-0.08%) and thus into Brent (North Sea oil fields). I hope to use this to save for the second half of the heating oil tanks. With the monthly savings rate, I hope to achieve a normal average price.

What do you think?

How do you do it with your heating oil supply?

6 Comments

DünnParkettBohrer@user88b8e3cfdd1c4e20

3Mon

Can go up, isn't BRENT North Sea oil? WTI would be the US oil from e.g. Texas or Louisiana or?

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Kevin E.@KevinE

3Mon

This removes the risk of the heating oil price ruining you financially. At the same time, however, you will not achieve the highest possible return in the long term. At least that's my assessment.
It's like insurance. If you need it because of existential risks, go for it. If you can afford the potential costs, it usually makes more sense not to have the insurance.

Of course, there's also a bit of psychology involved.

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Smudo@Smudeo

3Mon

@Psychorex cool idea. I've had heating oil for 20 years. First fill at 65 cents, last fill at 75 cents. I never empty mine. Tank (3000 liters) gives cheap heating oil every 2-3 years (like now) then I fill up. The question is also: invest 3000 euros at 3%, 3 years = 3300 euros and then fill up for 1.1 euros per liter???

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DünnParkettBohrer@user88b8e3cfdd1c4e20

3Mon

Even if it doesn't work out, a smart consideration 👍🏻

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