Brief Description of Oil and Natural Gas Derivatives Oil derivatives are mainly used by companies that wish to manage the price risk they run from using fuel in their productive and operational activities. The structure of these products is similar to the structure of interest rate risk management products (swaps, caps and floors). However in this case, the underlying is the price of a commodity rather than the interest rate. Commodity markets offer a wide range of underlyings that vary mainly with regard to the following features: 1. Refining stage Crude Oil Residual Fuel Oil Gas Oil Kerosene (Jet) Diesel Gasoline Natural Gas 2. Type of Use Aviation Shipping Land-based 3. Extraction, Refinery and Receipt Site North West Europe Brent West Texas (WTI) Mediterranean Hedging products are usually benchmarked against price bulletins by independent issuers, such as Platt's and Reuters, or against prices of the underlying commodities in the major International Futures Exchanges. These include the London Metals Exchange (LME), the New York Board of Trade (NYBOT), the Chicago Board of Trade (CBOT) and the Chicago Mercantile Exchange (CME).