For a better informed hedge, you believe it is simultaneously necessary to align with the expected future market state of the principal commodity. Using the term structure of futures contracts for the futures contract you selected above, assess the market risk over the three months period.

Assessment criteria: o Plotting the term structure o Implication based on the curvature o Potential market risk based on the curvature

Contract Code	Future contract name
LCO	ICE Europe Brent Crude Electronic Energy Future

54.23 LCO 1 LCOc2 LCOc3 date Trade Clos Trade Clos Trade Clos 31/03/2020 22.74 26.35 29.66 30/03/2020 22.76 26.42 29.78 27/03/2020 24.93 27.95 30.91 26/03/2020 26.34 28.65 31.29 25/03/2020 27.39 29.99 32.56 24/03/2020 27.15 29.74 31.94 23/03/2020 27.03 29.29 31.21 20/03/2020 26.98 29.00 30.63 19/03/2020 28.47 30.30 31.81 18/03/2020 24.88 26.69 28.31 17/03/2020 28.73 30.41 31.93 16/03/2020 30.05 31.69 33.16 13/03/2020 33.85 35.44 36.77 12/03/2020 33.22 35.20 36.67 11/03/2020 35.79 37.23 38.23 10/03/2020 37.22 38.09 38.82 9/03/2020 34.36 35.10 35.78 6/03/2020 45.27 45.52 45.80 5/03/2020 49.99 50.17 50.28 4/03/2020 51.13 51.25 51.29 3/03/2020 51.86 51.77 51.67 2/03/2020 51.90 51.75 51.65 28/02/2020 50.52 49.67 49.59 27/02/2020 52.18 51.73 51.67 26/02/2020 53.43 52.81 52.80 25/02/2020 54.95 54.26 24/02/2020 56.30 55.77 55.75 21/02/2020 58.50 57.94 57.72 20/02/2020 59.31 58.80 58.57 19/02/2020 59.12 58.72 58.58 18/02/2020 57.75 57.51 57.52 17/02/2020 57.67 57.49 57.50 14/02/2020 57.32 57.20 57.25 13/02/2020 56.34 56.38 12/02/2020 55.79 55.91 56.11 11/02/2020 54.01 54.21 54.50 10/02/2020 53.27 53.57 53.95 7/02/2020 54.47 54.80 55.16 6/02/2020 54.93 55.26 55.58 5/02/2020 55.28 55.43 55.56 4/02/2020 53.96 54.13 54.26 3/02/2020 54.45 54.61 54.73 31/01/2020 58.16 56.62 56.42 30/01/2020 58.29 57.33 57.00 29/01/2020 59.81 58.91 58.35 28/01/2020 59.51 58.81 58.26 27/01/2020 59.32 58.58 58.00 24/01/2020 60.69 59.89 59.19 23/01/2020 62.04 61.28 60.61 22/01/2020 63.21 62.45 61.77 21/01/2020 64.59 63.83 63.13 20/01/2020 65.20 64.34 63.60 17/01/2020 64.85 64.03 63.32 16/01/2020 64.62 63.81 63.17 15/01/2020 64.00 63.21 62.60 14/01/2020 64.49 63.71 63.10 13/01/2020 64.20 63.48 62.89 10/01/2020 64.98 64.25 63.63 9/01/2020 65.37 64.66 64.02 8/01/2020 65.44 64.79 64.14 7/01/2020 68.27 67.57 66.87 6/01/2020 68.91 68.07 67.32 3/01/2020 68.60 67.76 67.05 2/01/2020 66.25 65.56 64.97 31/12/2019 66.00 65.29 64.68 56.54 54.23 LCO 1 LCOc2 LCOc3 date Trade Clos Trade Clos Trade Clos 31/03/2020 22.74 26.35 29.66 30/03/2020 22.76 26.42 29.78 27/03/2020 24.93 27.95 30.91 26/03/2020 26.34 28.65 31.29 25/03/2020 27.39 29.99 32.56 24/03/2020 27.15 29.74 31.94 23/03/2020 27.03 29.29 31.21 20/03/2020 26.98 29.00 30.63 19/03/2020 28.47 30.30 31.81 18/03/2020 24.88 26.69 28.31 17/03/2020 28.73 30.41 31.93 16/03/2020 30.05 31.69 33.16 13/03/2020 33.85 35.44 36.77 12/03/2020 33.22 35.20 36.67 11/03/2020 35.79 37.23 38.23 10/03/2020 37.22 38.09 38.82 9/03/2020 34.36 35.10 35.78 6/03/2020 45.27 45.52 45.80 5/03/2020 49.99 50.17 50.28 4/03/2020 51.13 51.25 51.29 3/03/2020 51.86 51.77 51.67 2/03/2020 51.90 51.75 51.65 28/02/2020 50.52 49.67 49.59 27/02/2020 52.18 51.73 51.67 26/02/2020 53.43 52.81 52.80 25/02/2020 54.95 54.26 24/02/2020 56.30 55.77 55.75 21/02/2020 58.50 57.94 57.72 20/02/2020 59.31 58.80 58.57 19/02/2020 59.12 58.72 58.58 18/02/2020 57.75 57.51 57.52 17/02/2020 57.67 57.49 57.50 14/02/2020 57.32 57.20 57.25 13/02/2020 56.34 56.38 12/02/2020 55.79 55.91 56.11 11/02/2020 54.01 54.21 54.50 10/02/2020 53.27 53.57 53.95 7/02/2020 54.47 54.80 55.16 6/02/2020 54.93 55.26 55.58 5/02/2020 55.28 55.43 55.56 4/02/2020 53.96 54.13 54.26 3/02/2020 54.45 54.61 54.73 31/01/2020 58.16 56.62 56.42 30/01/2020 58.29 57.33 57.00 29/01/2020 59.81 58.91 58.35 28/01/2020 59.51 58.81 58.26 27/01/2020 59.32 58.58 58.00 24/01/2020 60.69 59.89 59.19 23/01/2020 62.04 61.28 60.61 22/01/2020 63.21 62.45 61.77 21/01/2020 64.59 63.83 63.13 20/01/2020 65.20 64.34 63.60 17/01/2020 64.85 64.03 63.32 16/01/2020 64.62 63.81 63.17 15/01/2020 64.00 63.21 62.60 14/01/2020 64.49 63.71 63.10 13/01/2020 64.20 63.48 62.89 10/01/2020 64.98 64.25 63.63 9/01/2020 65.37 64.66 64.02 8/01/2020 65.44 64.79 64.14 7/01/2020 68.27 67.57 66.87 6/01/2020 68.91 68.07 67.32 3/01/2020 68.60 67.76 67.05 2/01/2020 66.25 65.56 64.97 31/12/2019 66.00 65.29 64.68 56.54