Abstract
Most people would not think petrochemicals and commodity plastics have much in common with pork bellies, sugar, gold, soybeans, and cotton. But three financial trading organizations do. Recently created units of Shell Oil, Louis Dreyfus Energy, and oil and gas distributor Enron think they can smooth out the bumps in commodity chemical prices for both resin producers and users. After all, other commodity traders do the same for large buyers of commodities used for food, agricultural products, jewelry, and textiles. The three energy companies are now offering sellers and purchasers of widely sold chemical products financial instruments that guarantee prices for a fixed period of time—generally from six months to five years. Like homeowner's insurance, these financial instruments can reimburse commodity producers and purchasers for unexpected losses. With the payment of a premium, the insurance policies are available for petrochemicals such as ethylene, propylene, and styrene and for bigvolume resins suc...
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
