Inspired by this article Hedging Against Rising Heating Oil Prices using Heating Oil Futures, I wonder whether hedging against rising oil and gas prices makes sense for private households, too? If so, which financial instruments are particularly useful?
Many people claim that a big amount of their income goes to heating and electricity directly. Consequently, they are hit quite severe by a sudden increase in the prices of the underlying commodities.
Thus, even though they do not use a million barrels a month, it might still make sense, right?
In which case this thought is not entire without merit: Of course, the average person will be most likely less informed about all the available instruments. However, households could also team up in some kind of association, to follow just that common interest. Are you aware of any such institution?