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Enron Mail |
Wendy,
Thanks. I look forward to receiving a package from you. Vince Wendy King@ENRON 06/27/2000 04:37 PM To: Vince J Kaminski/HOU/ECT@ECT cc: James A Ajello/HOU/ECT@ECT, Tim Battaglia/NA/Enron@Enron Subject: Backwardation hedge strategy Vince, I am sending via internal mail samples of a hedge strategy that may offer opportunity to store commodities in a backwardated market. I would like your opinion as to if this strategy works, and if it is practical (ie cost of hedges and complexity of execution/ monitoring is reasonable). If you think there is value, or have other ideas along the same lines....we are very much need of such a risk and inventory management tool for several deals we are originating. We seek a cost effective method to manage backwardation while storing large quantities of petroleum products for 3-5 year deals. The inventory stored in tank will turn over, but continuous, large, minimum operating balances are required (1 million barrels of gasoline and 2 million barrels of crude oil). Thanks for your assistance, If there is any question, please do not hesitate to call. I will be on vacation from June 29th pm - July 11th. In my absence, please contact Tim Battaglia. Wendy King
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