Tesoro Reconsiders Hedge Strategy

Tesoro Reconsiders Hedge Strategy

Tesoro Corp. will reevaluate its hedging strategies in light of energy market volatility and expects second-quarter earnings to be $125 million lower as a result.

In addition, the refiner estimated per-barrel operating expenses will increase by 30 to 50 cents because of higher energy costs.

Tesoro said it typically hedged less than twenty percent of its crude and petroleum product volumes, but is rethinking that strategy in light of the market’s volatility, which has led to crude price swings of $10 a barrel in the past 10 days.

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