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UK-based physical marine gas oil supplier, Geos Group, says that it is responding to fluctuating oil and bunker prices by working with clients to minimize risk via hedging strategies.

In a statement, the company said: "As the price of marine bunker fuel is directly linked to the global price of crude oil - which is always going up and down - ship owners and operators are becoming concerned about the possible threat of an upward trend in the oil market over the next few years.

"Increasingly, businesses in the offshore sector are seeking ways to protect themselves against the financial risk of a rising oil market, which would lead to higher fuel costs, which would impact heavily on the overall operational cost of a project.

Geos Group stated that it is "responding by working with clients to look to the future and develop their hedging strategies: By incorporating financial instruments such as swaps, caps, collars and swap options into their purchasing plans, ship owners and operators can replace an unknown future fuel price with a more certain outcome".

Geos Group pointed out that earlier this year, Spencer Dale, Group Chief Economist at BP, noted in The Telegraph: "The world's demand for energy is likely to increase by almost 40 percent over the next 20 years or so, driven by growth in developing economies. To be in a position to meet those needs - and so facilitate that growth - we need to lift our sights from the current hurly-burly and look to the future."

Geos Group's Commercial Director, Adrian Proctor, remarked: "Although there is still some risk involved, and possibly an additional cost, a hedging strategy that is carefully structured to suit a client's needs can offer considerable protection against the financial risks of a highly volatile fuel market."