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  • Sulphur content of bunker - Comparison between 3.5% barges Rotterdam and IFO380
  • Hannes Wolff
    GMT 02:57
    21st Mar 2007
    Dear Ms Lawrence,

    My question refers to the sulfur content of bunker, specifically in the port of Rotterdam. In the derivatives market, there are 3.5% sulphur barges fob Rotterdam swaps available. Is there any webpage where I could compare 3.5% sulphur barges fob Rotterdam prices with IFO380 prices? I would like to calculate the correlation of those two prices in order to measure the hedging effectiveness.

    Thanks beforehand for your kind support. With best regards,

    Hannes Wolff
  • Janet Lawrence
    The Oxford Princeton Programme

    GMT 19:43
    22nd Mar 2007
    IP: x.x.78.175
    Mr. Wolff,

    I'm sorry, but this isn't my area of expertise. Could you ask this question to some physical or derivative brokers? Have you "Googled" the topic to see if you can find any help?

    Janet Lawrence
  • Hannes Wolff
    GMT 19:53
    22nd Mar 2007
    IP: x.x.35.114
    Thank you for your reply. I have been in contact with some brokers and for those who are interested, the correlation between the two prices is around 99%, so almost perfectly correlated, leaving relatively little basis risk. On averag 3.5% barges Rotterdam prices are $5 less than IFO380 Rotterdam prices.

    Best regards, Hannes Wolff

    For those who are interested:
    MSN: hanneswolff@hotmail.com
    Skype: HannesWolff
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