There are many objectives to this project. For the next three month, the primary goal is to ensure that there’s a constant supply of jet fuel oil for the company (replaced with Crude oil to assume). The second goal is to purchase 10,000 barrels jet fuel oil in order to be used for operational components. Last but not least, the objective is to devise a cost-saving strategy. At minimum 70% of the $100,000 initially available will be used in order to hedge oil prices. 30% will go to speculative purposes to make short-term gains in other agreements. Short Future hedges are the main hedging strategy. This strategy protects the investor against loss due to fluctuations in cash market prices. If an investor plans to sell a product in the near future, but believes the price will rise before the maturity period ends (Carmona-Durrleman, 2003). This is where the jet oil company’s buyer sells short oil hedges by buying back their future contracts. It is expected that futures transactions will outweigh any decline in cash markets. You should hedge your investment capital by at least $70,000 Because of volatility in oil markets, it is essential to hedge the jet fuel price risks. It offers substantial return potential. The short-term hedge futures method can cause the assets to experience value decline and time decay as their maturity dates approach. Therefore, we propose to use vertical put spreads that cover 30% or more of the 10,000 barrels. This will help to reduce the cost of obtaining and storing the required barrels for aircraft operation. My risk can be hedged using a short hedge, which is a futures instrument. This strategy protects the investor against volatility in the oil market by using an index method. This is because the gold index technique does not have any correlation with the primary risk-mitigating item. The future contract pricing technique was used to reduce jet oil risk. Because of the volatility seen in oil prices over the past four months (April’s highest price since last year), this strategy was adopted. These data indicate that there is a greater chance that the oil price will fall than increase in the immediate future. The contract price can be used to mitigate the price inflation risk resulting from Russia’s ongoing war with Ukraine. A contract price is essential because of the sudden rise in oil prices across Europe. This will increase Europe’s demand for the commodity in the short term.