Falling oil prices affect more than just the oil and gas exploration and extraction companies. Many firms rely on secondary demand from these industries, and the money and people they bring into the area.
The oil majors have a number of financial tools at their disposal to protect themselves from price volatility, while most of the smaller and less directly linked firms have none, despite being just as affected by falling oil prices. That is until now.
Since 2009, Portland has been providing hundreds of businesses with specialist protection against fuel and oil price volatility, and Portland can also protect against downturns in your revenue as a result of downturns in the oil and gas market. Portland pay you as crude prices fall, helping you to take control and reduce the impact of falling crude prices on your revenue.
For as little as £500, you set the price at which you need protection to start, and if at any time in the following 12 months the oil price goes below that level, you get paid by Portland. You do not need to buy or sell oil to be protected.
Portland Oil Price Protection offers a 3 tier multiplier, as follows:
Level One Multiplier - $10 Drop
Level One offers protection should Oil Prices fall $10 below today’s price.
If prices fall by over $10, Portland will pay out 5 x the original premium paid.
Level Two Multiplier - $20 Drop
Level Two offers protection should Oil Prices fall $20 below today’s price.
If prices fall by over $20, Portland will pay out 8 x the original premium paid.
Level Three Multiplier - $30 Drop
Level Three offers protection should Oil Prices fall $30 below today’s price.
If prices fall by over $30, Portland will pay out 10 x the original premium paid.